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CME: Corn Futures Closed Higher Friday

22 July 2013

US - September Corn finished up 3 at 544, 1 1/2 off the high and 7 1/4 up from the low. December Corn closed unchanged at 500 3/4. This was 9 3/4 up from the low and 3/4 off the high.

December corn closed unchanged on the session and up 9 3/4 cents from the early lows but still closed 8 1/2 cents lower for the week. The market has still managed just one close under $5.00 since December of 2010.

The market was trading near 4 cents lower into the mid-session as the 5-day weather outlook continues to show good rains for the driest areas of the Corn Belt.

Pollination is expected to be very active in the next two weeks and if the rains hit over the weekend and next week, much of the Corn Belt will pollinate in non-stressful conditions and this has helped to pressure the market.

Traders see crop conditions down 1-2% for the Monday update but the rain event in the next week should keep conditions favorable for pollination. September corn closed 3 cents higher on the day with the September/December spread closing at the highest inversion since August of 2012.

The Argentina Agriculture Minister yesterday pegged corn production for the 2012/13 season at a whopping 32.1 million tonnes as compared with 26.1 million tonnes as their previous estimate as planted area was adjusted sharply higher.

The USDA had the crop pegged at 26.5 million tonnes in the last World supply/demand update. If all of the "extra" corn is moved to the export market, Argentina could export a record high 24.1 million tonnes as compared with the current USDA estimate of 18.5 million tonnes.

September Rice finished up 0.165 at 15.555, equal to the high and 0.065 up from the low.

Soy Futures Closed Higher

August Soybeans finished up 21 1/2 at 1490 3/4, 2 off the high and 21 3/4 up from the low. November Soybeans closed up 8 1/4 at 1274. This was 13 1/2 up from the low and 4 1/4 off the high.

August Soymeal closed up 12 at 482.4. This was 11.4 up from the low and 2.3 off the high.

August Soybean Oil finished down 0.02 at 45.5, 0.19 off the high and 0.1 up from the low.

November soybeans closed 8 1/4 cents higher on the session today which leaves the market closing up 16 3/4 cents for the week. August soybeans closed 21 1/2 cents higher on the session and up to the highest level since September and up 61 3/4 cents for the week.

The market saw choppy to mostly higher trade early today and was trading up 3 1/2 cents on the day into the mid-session but fund buying emerged to spark the afternoon buying. Old crop tightness in soybeans and meal continues to provide underlying support.

August soybean meal closed $12.00 higher today and managed to push up to a new contract high of 484.70. Talk that spot soybeans were bid at $2.63 over September futures in Des Moines helped to support.

While the Midwest weather outlook shows good rain for much of the Midwest in the next two weeks, the strength in cash markets and a lack of farmer selling in soybeans has helped to support.

In addition, traders see weather in August as more critical to yield potential and this has led to talk that futures are still likely to hold some weather premium for prices.

Wheat Futures Closed Higher

September Wheat finished up 4 at 664 1/2, 5 1/2 off the high and 6 1/2 up from the low. December Wheat closed up 2 1/4 at 675 1/4. This was 5 3/4 up from the low and 5 1/4 off the high.

September Chicago wheat closed 4 cents higher on the session but down 16 1/2 cents for the week. September Kansas City wheat closed 3 cents higher on the session and down just 3 1/4 cents for the week.

Talk that feed usage for hard red wheat may be higher than traders have believed due to high corn basis in the southern plains has helped to support KC vs. Chicago. Talk of the oversold condition of the market and more confirmation of strong demand from China helped to provide underlying support.

Private exporters reported a sale of 120,000 tonnes of US soft red winter to China for the 2013/14 marketing year. KC and Minneapolis wheat was also higher overnight as traders saw less than expected rain totals for some of the dry areas of North Dakota this week as a positive force.

A weaker US dollar today and ideas that the market has already absorbed a bulk of the harvest pressured were seen as positive forces as well.

September Oats closed up 1 3/4 at 355. This was 2 up from the low and 1 3/4 off the high.

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