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CME: Corn Futures Closed Higher Wednesday

05 December 2013

US - March Corn finished up 5 1/4 at 436 1/2, 3 off the high and 10 up from the low. May Corn closed up 5 at 444 1/2. This was 9 3/4 up from the low and 3 1/4 off the high.

March corn closed 5 1/4 cents higher on the session and experienced the highest close since November 14th.

The market closed up 10 cents from the overnight lows. The market was 3 cents lower on the day ahead of the pit opening as traders reacted to news of additional rejections of US corn to China for GMO issues.

The market put in a high shortly after the release of the weekly ethanol production report. Funds were noted buyers and traders suspect more short covering was the key to the strength. Open interest was down 3,519 contracts yesterday.

Ethanol production for the week ending November 29th averaged 913,000 barrels per day. This is down 1.5% vs. last week and up 9.3% vs. last year. Total Ethanol production for the week was 6.391 million barrels.

Corn used in last week's production is estimated at 95.87 million bushels as compared with an average of 94.28 million bushels needed each week to meet the USDA estimate for the year. Stocks were 15.12 million barrels.

This is up 0.68% vs. last week and down 21.8% vs. last year. Private exporters reported a sale of 165,750 tonnes of US corn to Mexico with 33,150 of the total for the 2014/15 crop season.

January Rice finished down 0.025 at 15.905, 0.005 off the high and 0.005 up from the low.

Soy Futures Closed Higher

January Soybeans finished up 9 3/4 at 1329 1/2, 5 1/4 off the high and 18 up from the low. March Soybeans closed up 7 3/4 at 1312 1/4. This was 14 up from the low and 5 1/4 off the high.

January Soymeal closed up 1.5 at 430.3. This was 6.3 up from the low and 4.3 off the high.

January Soybean Oil finished up 0.24 at 40.35, 0.12 off the high and 0.3 up from the low.

January soybeans closed 9 3/4 cents lower on the session as speculative buying emerged to support the market on the early break and active buying in March calls added to the positive tone and helped spark buying support.

Ideas that demand news should remain strong and that China may emerge again soon helped to support. The market was trading up as much as 15 cents higher into the pit opening. The break early this morning managed to hold above the lows from yesterday and buying emerged on continued talk of strong near-term demand.

Stats Canada pegged canola production at 19.96 million tonnes which was well above trade expectations at 16.9 million and their last estimate of near 16 million. This, along with a massive wheat projection helped spark the early weakness.

Traders see good weather in South America for the crop but meal strength helped to pull the market higher into the mid-day.

January meal and oil both closed moderately higher. A firm gulf basis was also seen as a supportive factor today and higher trade in gold was also a plus. Traders see weekly export sales at just over 1 million tonnes for the report in the morning. Meal sales are thought to be near 275,000 tonnes and oil sales near 30,000.

Wheat Futures Closed Lower

March Wheat finished down 6 1/2 at 661 3/4, 10 1/2 off the high and 1 up from the low. July Wheat closed down 4 3/4 at 663 1/2. This was 3/4 up from the low and 8 1/2 off the high.

March wheat closed down 6 1/4 cents on the session and down 10 1/2 cents from the highs of the day. The lows were posted after Stats Canada pegged their wheat production at a whopping and record high 37.53 million tonnes as compared with trade estimates of 33.8 million tonnes and the October estimate of 33 million.

This, along with the larger than expected Australia crop estimate yesterday helped to ease concerns for tightening supply from key exporters. Biter cold weather moving into the US plains and a jump to a 7-month high for Paris futures were seen as supportive factors.

Algeria bought at least 100,000 tonnes of milling wheat for optional origin but many traders believe it is France. For the weekly export sales report, traders see wheat sales near 500,000 tonnes.

March Oats closed down 2 3/4 at 326 3/4. This was 3/4 up from the low and 4 3/4 off the high.

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