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CME: Corn Futures Closed Higher Thursday

19 July 2013

US - September Corn finished up 2 1/2 at 541, 1 1/2 off the high and 9 up from the low. December Corn closed down 1 1/4 at 500 3/4. This was 6 3/4 up from the low and 1 off the high.

September Corn traded as much as 6 cents lower into the pit opening, with December down as much as 8 cents.

Continued talk of much improved moisture for Iowa for the weekend and next week plus indications of more normal temperatures into the heart of pollination helped to spark selling.

Some traders also pointed to a round of profit-taking putting added downside pressure on the market early. Except for north-central Iowa, much of the state has seen very little rain in the past 10 days and there is talk of stressful conditions for crops in the southern half of the state and for parts of western Illinois as well.

Weekly export sales came in at 152,900 metric tonnes for the current marketing year and 1.59 million tonnes for the next marketing year for a total of 1.74 million which was higher than expected.

China was the largest buyer at 1.26 million tonnes followed by unknown destination at 212,600 tonnes. Cumulative new crop corn sales stand at 23.5% of the USDA forecast for the whole season versus a 5 year average of 16.3% sold.

Sales of 408,000 metric tonnes are needed each week to reach the USDA forecast. Both September and December Corn managed to rally during the US trading hours, helping to pare early losses and help September close in positive territory on the session.

September Rice finished up 0.11 at 15.39, 0.01 off the high and equal to the low.

Soy Futures Closed Lower

August Soybeans finished down 8 1/4 at 1469 1/4, 8 1/4 off the high and 10 3/4 up from the low. November Soybeans closed down 17 3/4 at 1265 3/4. This was 6 3/4 up from the low and 16 1/2 off the high.

August Soymeal closed up 2.4 at 471.5. This was 8.1 up from the low and equal to the high.

August Soybean Oil finished down 0.27 at 45.52, 0.4 off the high and 0.18 up from the low.

November Soybeans began the Wednesday evening trade with a gap lower open and traded sharply lower into the pit opening.

The market was down 24 1/2 cents on the day early in the session with more and more talk of improving crop weather into the weekend and next week for Iowa and the southwestern Corn Belt helped to pressure.

Gulf basis slipped slightly with talk of limited near-term demand. Weekly export sales for soybeans came in at 110,600 tonnes for the current marketing year and 591,700 for the next marketing year for a total of 702,300.

New crop sales were mainly "unknown" at 257,600 and China at 240,500 tonnes. Sales were very close to trade expectations and had little impact. Cumulative soybean sales for the new crop season stand at 33.7% of the USDA forecast for the marketing year versus a 5 year average of 23.0%. Sales of 439,000 metric tonnes are needed each week to reach the USDA forecast.

With the huge inversion of old crop to new crop, buyers have been more active at booking new crop needs. Meal sales came in at 41,600 metric tonnes for the current marketing year and 38,000 for the next marketing year for a total of 79,600.

Cumulative meal old crop sales stand at 99.9% of the USDA forecast vs. a 5 year average of 88.7% for this time of the year.

Oil sales came in at 10,600 metric tonnes, all for old crop. Cumulative sales stand at 89.7% of the USDA forecast for 2012/2013 season versus a 5 year average of 83.8%. Sales of 9,000 metric tonnes are needed each week to reach the USDA forecast.

Wheat Futures Closed Lower

September Wheat finished down 4 1/2 at 660 1/2, 6 3/4 off the high and 4 up from the low. December Wheat closed down 4 3/4 at 673. This was 4 1/2 up from the low and 6 3/4 off the high.

Wheat futures saw choppy and two-sided trade early today, with Chicago ending down around 4 cents on the session and September KC Wheat finishing near unchanged levels. Better crop prospects for Europe helped to offset the improving demand tone.

Weekly export sales came in at 996,600 metric tonnes which was slightly below trade expectations. China was the largest buyer at 420,000 tonnes followed by Brazil at 124,000. Cumulative sales stand at 39.8% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 28.6%.

Sales of 380,000 metric tonnes are needed each week to reach the USDA forecast. At their overnight tender, Egypt bought 300,000 tonnes from Romania, Ukraine and Russia. The European Union granted export licenses for 300,000 tonnes in the past week which pushed the season to date total to 591,000.

Wheat production prospects in Europe continue to improve and French analysts Strategy Grains pushed up their soft wheat European Union production forecast by 1.9 million tonnes. They see EU exports at a whopping and record high 22.3 million tonnes for the 2013/14 season.

September Oats closed unchanged at 353 1/4. This was 1/4 up from the low and 2 off the high.


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