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CME: Corn Futures Closed Lower Friday

23 September 2013

US - December Corn finished down 8 1/2 at 451, 9 off the high and 1/2 up from the low. March Corn closed down 8 1/4 at 463 3/4. This was 1 1/4 up from the low and 8 1/2 off the high.

December corn closed 8 1/2 cents lower on the session and down 8 cents for the week. The market traded sharply lower on the day into the mid-session and even managed to post new lows for the week and pushed down to the lowest level since August 14th.

Traders see slow export demand, increased harvest pressures for the second half of next week and continued reports of higher than expected yields as negative forces. Private forecasts for a jump in corn yield to near 157.6 bushels per acre added to the negative tone today.

Weakness in soybeans and wheat were also seen as bearish forces. A prominent grain analyst pegged 2014/15 planted acreage at 92.7 million acres as compared with 97.4 million this year and 97.2 million last year and this helped to provide some underlying support.

November Rice finished down 0.135 at 15.545, 0.055 off the high and equal to the low.

Soy Futures Closed Lower

November Soybeans finished down 24 1/4 at 1315 1/4, 25 1/4 off the high and 3 1/2 up from the low. January Soybeans closed down 23 1/2 at 1318. This was 4 up from the low and 24 1/4 off the high.

December Soymeal closed down 8.8 at 411.6. This was 1.6 up from the low and 9.5 off the high.

December Soybean Oil finished down 0.62 at 42.34, 0.64 off the high and 0.09 up from the low.

November soybeans closed 24 1/4 lower for the session and down a whopping 66 1/4 cents for the week.

The market pushed sharply lower on the session and was trading near 25 cents lower on the day into the mid-session. With high open interest and a negative weather outlook emerging for both US and South America weather, the market seems vulnerable to long liquidation selling.

Extended forecast models in the US show a lack of a cold weather threat all the way out into the first week of October for Iowa/Minnesota region and this is helping to pull out the last of the weather premium.

In addition, there have been some concerns for not enough moisture in Brazil to get the crop planted and the extended forecast calls for improving rains ahead.

Demand news is slow and traders see increased harvest pressure next week with dry Midwest weather after some additional rains over the weekend.

A prominent grain analyst pegged 2014/15 planted area at 83.6 million acres as compared with 77.2 million this year. This added to the negative tone. December meal closed lower for the 6th session in a row and lost $31.20 for the week.

Wheat Futures Closed Lower

December Wheat finished down 10 3/4 at 646 1/4, 13 off the high and 2 1/2 up from the low. March Wheat closed down 10 1/2 at 657. This was 2 3/4 up from the low and 12 1/2 off the high.

December wheat closed 10 3/4 cents lower on the session and this leaves the market up 4 3/4 cents for the week.

The market traded sharply lower on the day into the mid-session today and have given back all of yesterday's gains and more. Weakness in the other grains and a lack of support from outside markets helped to pressure the market.

Some traders see too much rain on Brazil's wheat crop as a supportive fundamental factor as quality or yield issues in Brazil could support higher imports of US wheat to Brazil. However, this has failed to provide much in the way of support.

More talk that rains in the central and southern plains in the US will boost plantings and get the winter wheat crop off to a good start helped to pressure.

December Minneapolis wheat challenged the contract lows made earlier this week and managed to hold above the lows but still closed more than 6 cents lower for the week. December KC wheat closed down 9 1/4 on the day and up just 3/4 of a cent for the week.

December Oats closed down 3 1/4 at 308 3/4. This was 2 3/4 up from the low and 3 1/4 off the high.


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