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CME: Corn Futures Closed Lower Monday

19 November 2013

US - December Corn finished down 10 at 412, 10 1/2 off the high and 1/2 up from the low. March Corn closed down 9 1/2 at 421. This was 1/2 up from the low and 9 3/4 off the high.

December corn closed 10 cents lower on the day and fell to the lowest level since July 6th of 2010. The market was only slightly lower on the day into the mid-session and is down for the 5th session in a row.

The market managed to hold above the November 8th lows early but news that a cargo of US corn to China rejected a cargo of US corn because it contained a genetically modified variety that is not approved for import.

This may have sparked the aggressive fund selling late I the day. Weekly export inspections came in at 30.76 million bushels as compared with 17.2 million last week and 27.65 million necessary each week to reach the USDA projection for the year.

Cumulative shipments have reached 18.2% of the USDA projection for the year as compared with 20.8% as average for this time of the year.

Traders believe that corn needs to be cheaper to compete with Ukraine corn offers on the world market and there is also a bearish tilt due to good weather to start the season in South America. Traders see corn harvest near 91% complete for tonight's weekly update.

January Rice finished up 0.08 at 15.845, equal to the high and 0.095 up from the low.

Soy Futures Closed Higher

January Soybeans finished up 7 at 1287 1/2, 2 1/2 off the high and 11 up from the low. March Soybeans closed up 7 1/2 at 1273 1/4. This was 11 1/4 up from the low and 2 1/4 off the high.

December Soymeal closed up 5.3 at 415.8. This was 9.2 up from the low and 0.8 off the high.

December Soybean Oil finished down 0.36 at 40.11, 0.64 off the high and 0.16 up from the low.

January soybeans closed 7 cents higher on the session and traded mostly in a choppy 5 cent trading range since the pit opening.

The market was trading 8 1/2 cents higher into the mid-session as the market clawed back some of the steep losses from Friday led by solid export demand.

December soybean oil moved down to the lowest level since October 7th as EPA proposed bio-fuel cuts and continued talk of trans-fat cut for the coming year had traders talking about reductions in usage.

In addition, the crush report on Friday showed hefty yields and this had traders talking about increased oil supply as well.

Traders see harvest near 96% complete for tonight's update. Weekly export inspections came in at 87.8 million bushels as compared with 82.6 million last week and just 22.6 million necessary each week to reach the USDA projection for the year.

Cumulative shipments have reached 35.1% of the USDA projection for the year as compared with 29.2% as average for this time of the year.

December meal moved to a 6-session low overnight but was trading $3.40 higher on the day into the mid-session. Talk that demand for US soybeans to China could be slowing helped to limit the advance.

Wheat Futures Closed Lower

December Wheat finished down 2 1/4 at 642 1/4, 8 1/4 off the high and 3/4 up from the low. March Wheat closed down 2 at 652 1/2. This was 1/2 up from the low and 7 3/4 off the high.

December wheat closed 2 1/4 cents lower on the session today and near the lows of the day. Weakness in corn helped to pressure the market as the move above Friday's highs failed to attract new buying interest.

The market traded higher early this morning and traded as much as 6 cents higher on the day overnight. Weekly export inspections came in at 18.1 million bushels as compared with 12.5 million last week and 16.6 million necessary each week to reach the USDA projection for the year.

Cumulative shipments have reached 57.2% of the USDA projection for the year as compared with 46.6% as average for this time of the year. A turn down in the US dollar and strength in soybeans failed to provide much support.

December Oats closed up 1 at 344. This was 3 1/2 up from the low and 1 1/4 off the high.


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