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CME: Corn Futures Closed Higher Friday

11 November 2013

US - December Corn finished up 6 1/4 at 426 3/4, 2 3/4 off the high and 11 1/4 up from the low. March Corn closed up 6 3/4 at 438 1/4. This was 11 1/2 up from the low and 2 1/2 off the high.

December corn closed 6 1/4 cents higher on the session and this left the market down just 1/2 of a cent lower on the week after a 14 cent range today.

The USDA report was considered slightly bullish against trade expectations. The USDA pegged the 2013/14 ending stocks at 1.887 billion bushels as compared with the September estimate of 1.855 billion and the average trade estimate at 2.029 billion bushels.

National average yield was pegged at 160.4 as compared with the average trade estimate of 158.8 bushels per acre and 155.3 in September.

Production is estimated at 13.989 billion bushels as compared with 14.003 billion as the average trade estimate and 13.443 billion from September.

Total usage was pegged at 12.95 billion bushels, up 275 million from the September update led by exports and feed usage.

The USDA pegged world ending stocks for 2013/14 at 164.33 million tonnes as compared to 151.42 million in September and trade expectations at 154.2 million tonnes.

China beginning stocks were revised higher, usage was revised lower by 8 million tonnes and ending stocks up by a whopping 12.62 million tonnes. The bearish world number stemmed from a big jump in beginning world beginning stocks but some traders believe that China stocks are not available for the world market.

The higher close with speculators holding a massive and record net short position might spark technical buying next week.

January Rice finished up 0.19 at 15.695, equal to the high and equal to the low.

Soy Futures Closed Higher

January Soybeans finished up 29 1/2 at 1296, 1 1/2 off the high and 34 1/4 up from the low. March Soybeans closed up 28 3/4 at 1276 3/4. This was 32 1/2 up from the low and 1 1/2 off the high.

December Soymeal closed up 18.5 at 422.3. This was 19.0 up from the low and 1.1 off the high.

December Soybean Oil finished down 0.5 at 40.24, 0.55 off the high and 0.17 up from the low.

January soybeans closed 29 1/2 cents higher on the session and pushed up to the highest level since October 26th.

This left the market closing up 44 1/2 cents on the week. December meal led the market higher closing up $19.00 on the day while December oil closed 61 lower and pushed down to the lowest level since October 8th.

The USDA report was considered neutral against trade expectations. The USDA pegged the 2013/14 ending stocks at 170 million bushels as compared with the September estimate of 150 and the August estimate of 220 million.

The average trade estimate was 172 million bushels with 240 million as the high end. National average yield was pegged at 43 as compared with the average trade estimate of 42.4 bushels per acre and 41.2 in September.

Production is estimated at 3.258 billion bushels as compared with 3.221 billion as the average trade estimate and 3.149 from September.

Total usage was pegged at 3.243 billion bushels, up 103 million from the September update. The USDA pegged world ending stocks for 2013/14 at 70.23 million tonnes as compared to 71.5 million in September and trade expectations at 72.3 million tonnes.

Beginning stocks were lower. A focus toward demand helped to support the market after the initial reactions to the report.

Wheat Futures Closed Lower

December Wheat finished down 3 1/4 at 649 3/4, 8 3/4 off the high and 5 3/4 up from the low. March Wheat closed down 2 1/4 at 661 1/2. This was 6 1/2 up from the low and 7 3/4 off the high.

December wheat closed down 3 1/4 cents on the session but still down 18 cents for the week. The market managed to recovery off of the early selling surge down but late selling turned active and the market closed lower for 10 of the last 12 sessions with very minor up closes.

The USDA report for wheat was considered bearish against trader expectations and this sparked the late selling. US all wheat carryout was pegged at 565 million bushels, up from 561 million from September and compared with the average trade estimate of 519 million bushels.

Feed usage was not adjusted up as much as expected and imports were adjusted higher and exports left unchanged.

World ending stocks for 2013/14 came in at 178.48 million tonnes, from the September estimate of 176.28 million and compared with trader estimates at 175.88 million tonnes. Argentina production was revised lower but not as much as traders expected.

Beginning stocks were revised higher as well which added to the negative tone. December KC wheat closed down 11 of the past 12 sessions and is down as much as 73 cents for this period. Minneapolis wheat traded higher near the closing bell.

December Oats closed down 4 1/2 at 334 1/2. This was 3/4 up from the low and 8 1/4 off the high.


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