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CME: Corn Futures Closed Up on Tuesday

27 February 2013

US - May Corn finished up 8 1/2 at 694, 1 1/2 off the high and 11 1/2 up from the low. July Corn closed up 7 1/2 at 679. This was 11 1/4 up from the low and 1 off the high.

May corn traded sharply higher into the closing bell and took out the highs from yesterday on firm interior cash markets and technical signals that suggested a short term bounce may have been in order. March corn traded a premium to March wheat early in the session on a tight supply outlook for corn relative to somewhat stable old crop supply in Chicago wheat. Ethanol plants were noted as being aggressive bidders for spring and early summer delivery as many expect production to ramp back up. FOB US Gulf corn jumped yesterday but export interest remains light. The weather points negative for new crop corn so far this week after snow storms swept across the western plains which helped soil moisture conditions. The eastern Corn Belt is picking up additional rainfall this afternoon with radar showing storms sitting on top of Illinois, Indiana, and Ohio. December corn briefly traded below 550 today but recovered mid-session as old crop corn caught a bid and drug it higher.

May Rice finished up 0.055 at 15.78, equal to the high and 0.13 up from the low.

Soybeans

May Soybeans finished down 3 1/2 at 1431 3/4, 10 3/4 off the high and 11 1/4 up from the low. July Soybeans closed down 3 1/2 at 1418 1/2. This was 13 up from the low and 11 1/2 off the high.

May Soymeal closed up 2.3 at 426.8. This was 6.5 up from the low and 2.5 off the high.

May Soybean Oil finished down 1.05 at 49.39, 1.11 off the high and 0.08 up from the low.

May soybeans traded lower on the day with support coming from the higher trade in the grain markets but traders noted the upside was limited for soybeans due to a negative technical outlook. The market has moved past the fears of a Brazil Union port strike for now and instead is beginning to turn its attention to rumors that China may have released domestic soybeans out of reserves for domestic crushers. The move has not been confirmed but some suggest it was being done to bridge the supply gap until Brazilian vessels begin to show up. Light buying support may be showing up on reports that soybean yields in Mato Grosso have been coming in below year ago levels but some analysts still anticipate better yields once the harvest pace progresses further.

Wheat

May Wheat finished up 5 3/4 at 711, 1 off the high and 13 1/4 up from the low. July Wheat closed up 4 at 714. This was 11 1/2 up from the low and 1 1/2 off the high.

Wheat markets traded higher on the day with Chicago wheat leading the way while Kansas City followed. The March Chicago wheat contract briefly traded a discount to March corn early in the session despite news overnight that Japan bought a cargo of US wheat overnight as it became the cheapest what in the world. The wheat market continues fall victim to the improving weather conditions across the Midwest. Areas of central and west central Oklahoma saw 1.5-2.25 inches of precipitation following the recent set of storms and significant moisture was picked up in the central third of Kansas as well. The eastern Corn Belt saw showers this morning and the storms will continue east this afternoon bringing additional rainfall to the region which will help soil moisture conditions further.

May Oats closed down 1 at 371 3/4. This was 13 1/2 up from the low and 4 3/4 off the high.


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