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CME: Corn Futures Closed Lower Wednesday

07 November 2013

US - December Corn finished down 3 3/4 at 421 1/4, 4 3/4 off the high and 1/2 up from the low. March Corn closed down 4 at 431 1/2. This was 1/2 up from the low and 5 off the high.

December corn closed 3 3/4 cents lower on the session and down to new 38 month lows. The market was trading 1 cent higher on the day ahead of the pit opening but supply concerns continue to attract active selling.

A weak US dollar and strength in crude oil and gold helped to support the market early and so did talk of a slowdown in harvest due to wet weather. South Korea passed on a tender to buy 70,000 tonnes of corn due to high prices.

The China National Grains and Oils Information Center senior economist believes that China will import no more than 5 million tonnes of corn and this may have been a factor to pull the market down to the lows.

The USDA has pegged imports at 7 million tonnes and may traders believe it will be much higher than 7.

Ethanol production for the week ending November 1st averaged 902,000 barrels per day. This is down 1% from last week and up 9% from last year. Total Ethanol production for the week was 6.314 million barrels.

Corn used in last week's production is estimated at 94.7 million bushels as compared with the average of 94.5 million bushels per week to meet this crop year's USDA estimate of 4.9 billion bushels.

Stocks were 15.165 million barrels, up 1.4% vs. last week and down 16.4% vs. last year. There were no imports for the 5th week in a row.

For the weekly export sales report in the morning, traders see corn sales near 1.15 million tonnes as compared with 237,500 tonnes necessary to reach the USDA export projection for the near.

January Rice finished up 0.095 at 15.375, equal to the high and 0.1 up from the low.

Soy Futures Closed Higher

January Soybeans finished up 4 3/4 at 1255, 6 off the high and 5 3/4 up from the low. March Soybeans closed up 4 1/4 at 1240 1/2. This was 5 1/2 up from the low and 5 1/2 off the high.

December Soymeal closed up 4 at 396.8. This was 4.5 up from the low and 0.4 off the high.

December Soybean Oil finished down 0.01 at 41.14, 0.28 off the high and 0.06 up from the low.

January soybeans closed up 4 3/4 on the session and stayed inside of yesterday's range. The market traded up as much as 10 3/4 cents higher on the day ahead of the pit opening and was up just 1 cent on the day into the mid-session as weakness in corn and wheat kept the trade choppy.

Talk of good weather for the developing crops in South America helped to pull the market down from the early highs. Weakness in the dollar and a risk-on vibe from outside markets plus talk that the market was a bit oversold after the sell-off from Thursday's peak helped to support the market early.

For the weekly export sales report in the morning, traders see soybean sales near 1 million tonnes as compared with 113,500 tonnes necessary to reach the USDA export projection for the year. Light producer selling had gulf basis firm early today.

Wheat Futures Closed Lower

December Wheat finished down 2 3/4 at 653 1/4, 7 1/4 off the high and 1 up from the low. March Wheat closed down 4 1/2 at 662 3/4. This was 3/4 up from the low and 8 1/2 off the high.

December wheat closed 2 3/4 cents lower on the session and down moderately from the early highs. Ideas that US wheat exporters will struggle ahead helped spark additional selling pressure.

Weakness in corn and a lack of new buying on the early bounce added to the long liquidation selling trend ahead of the USDA supply/demand report. Egypt bought 60,000 tonnes of wheat from Romania at their tender overnight and none from the US.

The China National Grains and Oils Information Center senior economist believes that China will import 5 million tonnes of wheat in 2013. The USDA has pegged imports at 9.5 million tonnes for the 2013/14 season.

For the weekly export sales report in the morning, traders see wheat sales near 425,000 tonnes as compared with 300,600 tonnes necessary each week to reach the USDA export projection for the year.

December Oats closed up 3 1/2 at 343 1/2. This was 4 1/4 up from the low and 2 1/2 off the high.


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