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CME: Corn Futures Closed Lower Friday

08 October 2012

US - December Corn finished down 9 at 748, 10 1/4 off the high and 1 3/4 up from the low. March Corn closed down 8 3/4 at 748 1/2. This was 1 3/4 up from the low and 9 3/4 off the high.

December corn closed 9 cents lower on the session and closed down 8 1/4 cents for the week. A private forecaster pegged corn production at nearly 11.2 billion bushels as compared with the September USDA forecast at 10.727 billion and this was seen as a bearish force.

The market pushed moderately lower on the day into the mid-session as traders see active harvest in the next week, poor demand for export and positioning ahead of next week's USDA Crop Production and Supply/demand report.

News that South Korea bought corn from Russia is seen as a negative factor as South Korea has traditionally purchased US corn.

However, both Black Sea and Brazil corn is moving at a discount to US corn and this has helped to pressure.

Weekly export sales Thursday came in at just 326,900 tonnes as compared with 440,300 tonne average necessary each week to reach the USDA projection for the year.

A bounce in soybeans provided some support for the market early but weakness in wheat, gold, energy markets helped to pressure. Traders see an active harvest weekend ahead.

November Rice finished down 0.265 at 15.105, 0.005 off the high and equal to the low.

Soybean Futures Closed Unchanged

November Soybeans finished unchanged at 1551 1/2, 18 off the high and 7 up from the low. January Soybeans closed unchanged at 1551. This was 6 3/4 up from the low and 18 off the high.

December Soymeal closed up 2.3 at 471.2. This was 3.7 up from the low and 5.4 off the high.

December Soybean Oil finished down 0.25 at 51.19, 0.69 off the high and 0.21 up from the low.

November soybeans closed near 1 cent higher on the session but down about 48 1/2 cents for the week. The market saw choppy and two-sided trade early in the day and managed a strong rally to as much as 18 cents higher on the day after the pit opening.

News that China bought another 180,000 tonnes of US soybeans for the 2012/13 season helped to support the market.

The rally fell short of Thursday's highs as traders seem to feel that the bounce off of Wednesday's lows has helped to alleviate the short-term oversold condition of the market.

The market set-back to near unchanged on the day into the mid-session due to weakness in the other grains and bearish crop production estimates for next week's reports with more and more traders looking for a 2-4 bushel per acre increase in soybean yield.

While a constant flow of bullish demand news has helped to provide support, the market is still trying to absorb news of higher than expected soybean yields and weather which is very conducive to an active harvest.

Basis levels on the river are firm Friday supported by active demand news. The solid China buying comes just one day after a weekly sales total of 1.3 million tonnes and traders are somewhat optimistic that China buyers may be active again next week after returning from holiday.

Wheat Futures Closed Lower

December Wheat finished down 11 3/4 at 857 1/2, 15 1/4 off the high and 1 1/4 up from the low. March Wheat closed down 11 at 868 3/4. This was 1 1/2 up from the low and 14 1/4 off the high.

December wheat closed 11 3/4 cents lower on the session and closed down 45 cents for the week. The close was a new low for the week as speculative sellers were active late.

The market pushed under Thursday's lows and was trading down 8 cents on the day shortly after the pit opening.

Weakness in the corn market plus sluggish export demand news plus talk of improving weather for the new crop into later next week helped to pressure. Traders see increasing chances of rain for the central and southern plains into late next week.

Chicago wheat is weaker than Minneapolis or Kansas City. Ideas that wheat is already priced too high to attract feedgrain demand plus further weakness in corn Friday is helping to pressure.

A weaker US dollar has been offset as a supportive force due to weakness in metal and energy markets.

December Oats closed down 3 1/2 at 367 1/4. This was 1/4 up from the low and 8 off the high.

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