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CME: Corn Futures Closed Lower Wednesday

18 July 2013

US - September Corn finished down 6 3/4 at 538 1/2, 10 1/2 off the high and 3/4 up from the low. December Corn closed down 8 3/4 at 502. This was 1/2 up from the low and 13 off the high.

September corn closed 6 3/4 lower on the day with December down 8 3/4 as the weather continues to shift to a wetter pattern for late July. Funds were noted sellers late in the day.

The market traded near unchanged ahead of the pit opening but was weaker into the mid-day and closed near the lows.

Another shift back to a wetter pattern in some forecast models for the Midwest for late July helped to spark some selling early today.

On top of better weather, South Korea continues to buy cheaper Black Sea corn and bought another 60,000 tonnes today which may have added to the negative tone. Ethanol production for the week ending July 12th averaged 876,000 barrels per day.

This is down 0.57% vs. last week and up 9.2% vs. last year. Corn used in last week's production is estimated at 91.98 million bushels and needs to average 97.13 million bushels per week to meet this crop year's USDA estimate of 4.6 billion bushels. Stocks were 16.578 million barrels.

This is up 5.5% vs. last week and down 15.2% vs. last year. Imports for the week jumped to 350,000 barrels. Ukraine weather is good and traders see a lack of stress for the US pollination for about 80% of the crop as a negative.

Talk that the European weather model for the Midwest was leaning wetter in the overnight updates was seen as a key negative force.

For the weekly sales report for release Thursday morning, traders see near 100,000 tonnes for old crop and near 1.3 million tonnes for new crop as the China business is confirmed.

September Rice finished up 0.02 at 15.28, equal to the high and 0.04 up from the low.

Soy Futures Closed Higher

August Soybeans finished up 2 1/4 at 1477 1/2, 4 1/2 off the high and 13 1/4 up from the low. November Soybeans closed down 2 3/4 at 1283 1/2. This was 8 1/4 up from the low and 9 1/2 off the high.

August Soymeal closed up 2.3 at 469.1. This was 5.5 up from the low and 2.3 off the high.

August Soybean Oil finished up 0.08 at 45.79, 0.32 off the high and 0.28 up from the low.

November soybeans closed nearly 3 cents lower on the day after choppy and two-sided trade with an inside trading session.

August closed higher and also saw an inside trading day and experienced the highest close since September 25th. Ideas that crops will do well in the next few weeks with a wetter forecast helped to provide overhead resistance.

Soybean basis bids fell sharply from yesterday in the Midwest as the sharp rally in futures and talk of some producer selling helped to pressure. There is also talk of Brazil soybeans moving into the southeast this week.

A wetter Iowa weather outlook for next week was enough to offset news of more China buying to help pressure the market into the mid-day. US exporters sold 165,000 tonnes of soybeans to China for the 2013/14 season.

December meal was $1.80 lower into the mid-session and pulled back from the highest close since June 12th. For the weekly export sales report for release ahead of the opening, traders see near 100,000 tonnes of old crop sales and near 550,000 tonnes.

Wheat Futures Closed Lower

September Wheat finished down 4 1/2 at 665, 9 off the high and 1 up from the low. December Wheat closed down 4 3/4 at 677 3/4. This was 3/4 up from the low and 8 3/4 off the high.

September wheat closed 4 1/2 cents lower on the day and saw the worst close since July 8th. Talk that the wheat price rally of last week may have left US wheat far less competitive on the world market helped to spark some selling.

A bounce in the US dollar and talk that Black Sea wheat is still moving on the world market helped to pressure.

The market traded higher overnight and early today with talk of potential stronger import demand from China helping to support but weakness in the other grains due to better US weather helped to spark some selling.

Ideas that China crop damage may have been about 10 million tonnes higher than earlier expectations helped to support the market as traders see China as a significant importer for the coming year.

China is tendering to buy 500,000 tonnes of Australia wheat. Jordan bought 100,000 tonnes of wheat at their optional origin tender and traders see Black Sea or French wheat. With the US harvest slowing down and near complete, traders see less harvest selling pressure as a positive force.

September KC wheat closed 1 cent lower. Traders see weekly export sales at just over 1 million tonnes for the weekly update ahead of the opening tomorrow. Sales last week were 1.437 million tonnes.

September Oats closed down 1 at 353 1/4. This was 1/4 up from the low and 4 1/4 off the high.

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