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CME: Corn Futures Closed Moderately Lower Wednesday

03 November 2011

US - Fund traders were more aggressive traders late in the session to push the market to a 5-session low close.

December Corn finished down 9 1/4 at 645, 14 1/2 off the high and 4 1/2 up from the low. March Corn closed down 9 1/4 at 656. This was 5 up from the low and 13 1/2 off the high.

The market opened higher as outside market forces were positive but there was a lack of new buying interest early.

Increased concerns that next week's USDA yield estimate could be higher, not lower than last month helped to pressure. Private estimates yesterday and again today came in with a slight increase in yield from last month's USDA forecast and this news helped to pressure the market into the mid-session and late in the day. Traders have been expecting a decline in yield for next weeks crop production update.

Wheat Futures Closed Lower

December Wheat finished down 6 1/2 at 623 1/2, 15 off the high and 3 1/4 up from the low. March Wheat closed down 6 3/4 at 659. This was 3 1/2 up from the low and 15 1/4 off the high.

December wheat closed moderately lower on the session and saw a 5-session low close.

A lower US dollar and higher trade for other grains, equity markets and metal markets helped to support the bounce early today. However, the market gave back the early gains and moved moderately lower on the session into the mid-day.

Weakness in corn, ideas that the US will continue to see heavy export competition from other world exporters and talk of better weather for the southern plains into next week helped to pressure.

A dollar bounce off of the lows and a set-back in the stock market off of the early highs was also seen as a negative force going into the close.

As more and more Australia new crop wheat moves on the world market, East Asia demand is likely to shift to Australia and was seen as more competition for US wheat exporters.

Kazakhstan grain harvest through November 1st reached 29.5 million tonnes as compared with 13.8 million last year.

Soybean Futures Closed Mostly Unchanged

January Soybeans finished up 1/4 at 1202 3/4, 15 3/4 off the high and 6 1/4 up from the low. March Soybeans closed up 1/4 at 1212 1/4. This was 5 1/4 up from the low and 15 3/4 off the high. December Soymeal closed down 0.2 at 310.5. This was 0.3 up from the low and 5.0 off the high.

December Soybean Oil finished up 0.05 at 50.85, 0.4 off the high and 0.44 up from the low.

January soybeans closed near unchanged on the day with an inside trading sessions.

The market saw some early strong gains but the set-back in corn values and the inability of the market to push over yesterday's highs helped trigger the sell-off to just slightly higher on the day into the mid-session.

A supportive tone to outside market forces and rumors that China had purchased 2-4 cargoes of US soybeans and light producer selling in the US were all seen as positive forces early today. However, the support from outside forces diminished as the US dollar strengthened from early lows and the stock market gave back much of the early gains.

Private estimates yesterday and today which were higher than last months USDA forecast added to the weaker tone into the mid-session.

Favorable weather for the start of the South America growing and planting season is also seen as a negative factor.

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