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CME: Corn Futures Closed Higher Tuesday

13 March 2013

US - May Corn finished up 3 1/2 at 714 3/4, 3 off the high and 6 up from the low. July Corn closed up 3 1/4 at 694. This was 5 3/4 up from the low and 3 off the high.

May corn traded higher on the day as traders become a bit more optimistic on the ethanol production outlook in the spring and on firm cash markets.

Basis levels continue to hold at record high levels for this time of year as physical traders and processors attempt to drum up cash grain amid a tight supply outlook.

Wet weather in the southern plains may have offered some support to the new crop corn contract today on reports that planters were unable to get back in the fields after heavy rainfall moved through the southeast and delta yesterday.

The 2 week forecast for the southern plains is trending drier than normal but precipitation is expected to pick up in the northern plains in the 6-10 day outlook which could help boost soil moisture profiles.

Wires reported midday that Ethanol RIN values plunged lower this morning, losing nearly half their value from the day prior. The market recovered late in the day but traded off the highs from Monday. RIN prices have soared in the last 2 months to over $1 per gallon.

May Rice finished down 0.005 at 15.235, 0.025 off the high and 0.005 up from the low.

Soy Futures Closed Lower

May Soybeans finished down 11 1/2 at 1468, 12 1/2 off the high and 3 up from the low. July Soybeans closed down 9 3/4 at 1445. This was 6 up from the low and 11 1/4 off the high.

May Soymeal closed down 1.8 at 436.2. This was 2.5 up from the low and 2.7 off the high.

May Soybean Oil finished down 0.44 at 50, 0.49 off the high and 0.14 up from the low.

May soybeans traded lower into the closing bell and spent most of the day in negative territory on light profit taking.

Buying support continues to show up due to the delays in loading at the ports in Brazil but local traders noted that cargos are loading and shipments should begin to increase through the month of March.

A Brazilian consultant estimated Brazil's harvest at half way complete and top producing state Mato Grosso is estimated at 75 per cent complete.

Light rainfall will be seen in southwestern Argentina over the next two weeks and the remainder of the growing region will experience favorable conditions for crop development and fieldwork.

Southern Brazil is expected to see mostly favorable conditions for crop development the remainder of this week, as well as the central growing regions of the country.

Gulf bids for US soybeans held steady on day on steady export demand interest. Traders also noted that cash soybean meal prices were under pressure today.

Wheat Futures Closed Higher

May Wheat finished up 3 1/2 at 703 1/2, 3 off the high and 7 3/4 up from the low. July Wheat closed up 2 at 703 3/4. This was 6 1/4 up from the low and 2 3/4 off the high.

Wheat markets traded mixed on the day but saw minor support from a stronger corn market. KC lost to Chicago wheat and the Chicago May/July spread traded into even money at one point on strong feed and export demand.

Equity markets took a step back which added come corrective, short covering support to various commodity markets.

Winter wheat conditions showed improvement from last week with Kansas wheat rated at 27 per cent G/E, up from 24 per cent the week prior. P/VP ratings fell to 32 per cent from the week prior. Oklahoma conditions were reported at 20 per cent G/E, up from 16 per cent the week prior.

The recent snow and rainfall has improved conditions in the western plains but more is needed. The forecast looks dry in the southern plains the next 6-10 days.

Physical traders noted that additional feed wheat business was being done in the southwest plains as the KC wheat market narrowed its premium to corn.

It was also rumored that a large amount of Chicago wheat was set to load out of delivery space in the eastern Corn Belt destined for southwestern US feedlots.

May Oats closed up 1 at 394. This was 5 1/2 up from the low and 2 1/4 off the high.

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