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CME: Corn Futures Closed Higher Thursday

20 September 2013

US - December Corn finished up 3 1/4 at 459 1/2, 3 3/4 off the high and 4 up from the low. March Corn closed up 3 1/4 at 472. This was 4 up from the low and 3 3/4 off the high.

December corn closed 3 1/4 cents higher on the day as a short-term wet weather forecast and a more risk-on attitude from fund traders helped to support.

Gains in wheat and liquidation of soybean/corn spreads helped to support as well. Fund traders held a hefty net short position going into the FOMC meetings and the "risk-on" vibe sparked short-coving and new buying support.

Open interest was up 62,029 contracts from the September 11th and this would suggest that funds pressed the short-side over the past week.

Weekly export sales came in at 437,400 metric tonnes which was down from expectations near 550,000. Cumulative sales stand at 42.5% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 36.8%.

Sales of 354,000 metric tonnes are needed each week to reach the USDA forecast. The short-term weather outlook remains a bit supportive as wet weather could slow harvest.

November Rice finished up 0.07 at 15.68, equal to the high and 0.08 up from the low.

Soy Futures Closed Lower

November Soybeans finished down 8 1/4 at 1339 1/2, 21 3/4 off the high and 8 1/4 up from the low. January Soybeans closed down 8 3/4 at 1341 1/2. This was 8 up from the low and 21 1/2 off the high.

December Soymeal closed down 5.4 at 420.4. This was 0.9 up from the low and 10.9 off the high.

December Soybean Oil finished up 0.25 at 42.96, 0.13 off the high and 0.52 up from the low.

November soybeans closed 8 1/4 lower on the day and also managed to fill the gap left from August 26th.

This was the lowest close since August 23rd. Open interest is up 46,000 contracts since August 23rd and traders are nervous that funds may begin a more aggressive long liquidation trend if support does not hold.

The market pushed lower into the mid-session some fund trader unwinding of soybean/corn spreads and ideas that the global soybean supply will be burdensome in 2014 helped to pressure.

In addition, the lack of follow-through higher in many financial and commodity markets after yesterday's surge up helped to spark some long liquidation selling early in the day. Traders also see some rain on the dry areas of Iowa as a factor which might benefit some fields.

Weekly export sales for soybeans came in at 923,300 metric tonnes which was about 225,000 higher than expected. Cumulative sales stand at 61.4% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 44.5%.

Sales of just 285,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 26,300 metric tonnes for the current marketing year and 20,300 for the next marketing year. Old crop sales stand at 100.6% of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 95.2%.

Net oil sales came in at 20,600 metric tonnes for the current marketing year and none for the next marketing year. Cumulative oil sales stand at 98.0% of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 94.5%.

Meal is trading $1.60 lower on the day into the mid-session with December oil up about 20 points. On top of the weekly sales update, US exporters reported daily sales of 120,000 tonnes of US soybeans sold to unknown destination.

Wheat Futures Closed Higher

December Wheat finished up 10 1/2 at 657, 5 1/2 off the high and 10 1/4 up from the low. March Wheat closed up 10 at 667 1/2. This was 10 1/4 up from the low and 6 off the high.

December wheat closed more than 10 cents higher on the session and experienced the highest close since August 28th. Firm export news and the move over last week's highs sparked significant buying and short-covering.

December Kansas City closed 9 1/2 higher and December Minneapolis wheat closed up 5 cents. The rally has pushed Chicago up to the highest level since September 3rd and caught fund traders short.

Short-covering was active as the move toward riskier asset purchases from world money managers helped to trigger the buying and short-covering.

Weekly export sales came in at 704,400 metric tonnes for the current marketing year and -2,500 for the next marketing year for a total of 701,900.

This was about 125,000 tonnes above trade expectations. Cumulative wheat sales stand at 57.0% of the USDA forecast for 2013/2014 (current) marketing year versus a 5 year average of 46.8%. Sales of just 344,000 metric tonnes are needed each week to reach the USDA forecast. European wheat was also higher today.

The European Union granted export licenses for 546,000 tonnes of wheat for the week which pushed the cumulative total for the season to 5.7 million tonnes as compared with 2.928 million last year by this date.

December Oats closed up 8 1/4 at 312. This was 6 1/2 up from the low and 3/4 off the high.


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