December corn traded lower on the day as traders took profits on gains this week ahead of the Thanksgiving holiday. Traders noted volume was light and markets will be closed tomorrow and reopen Friday morning.
The supportive trade this week was linked to a stronger corn basis in the interior of the US and the Gulf of Mexico as traders anticipate an uptick in export demand in 2013.
The bullish optimism was damped after data showed that ethanol production for the week ending November 16th averaged 811,000 barrels per day which was down 13,000 from the week prior and down 11.56 per cent vs. last year. Total Ethanol production for the week was 5.67 million barrels.
Corn used in last week's production is estimated at 85.2 million bushels which was down from 86.52 last week and vs. the 86.6 million bushels needed per week to meet this crop year's USDA estimate of 4.5 billion bushels.
This crop year's cumulative corn used for ethanol production is 937.6 million bushels. Ethanol stocks increased by 1.08 million barrels to 18.93 million barrels and stocks are up 8.5 per cent vs. last year.
January Rice finished down 0.095 at 14.83, 0.06 off the high and 0.01 up from the low.
Soy Futures Closed Lower
January Soybeans finished down 4 1/2 at 1408 1/4, 15 3/4 off the high and 9 up from the low. March Soybeans closed down 2 1/2 at 1393 3/4. This was 9 up from the low and 13 1/4 off the high.
December Soymeal closed down 1.7 at 427.9. This was 1.4 up from the low and 7.6 off the high.
December Soybean Oil finished up 0.21 at 48.53, 0.27 off the high and 0.68 up from the low.
January soybeans traded modestly lower on the day in what was described as a choppy, low volume trading session. Soybean meal finished the day slightly lower but soybean oil nudged higher.
The market sank overnight but buying interest showed up just before pit trading began. The market turned lower shortly thereafter as traders evened up positions ahead of the Thanksgiving holiday.
Pressure was also linked to a more favorable outlook for South American weather the next 2 weeks. Strong demand by China continues to support the market and the USDA reported this morning that US exporters sold 20,000 tonnes of soybean oil to China and 56,000 tonnes to an unknown destination.
The soybean oil sales pace has surged in the last 2 weeks which has triggered large amounts of speculative short covering in the market. It was also reported that US exporters sold 120,000 tonnes of US soybeans to China which was rumored yesterday.
Chinese October soybean imports were reportedly up 5.79 per cent on the year and January through October imports are up 16.6 per cent. Soybean oil imports surged 82.7 per cent on the year and January through October imports up 47.3 per cent.
Wheat Futures Closed Higher
December Wheat finished up 1/4 at 845 1/4, 4 1/4 off the high and 4 1/4 up from the low. March Wheat closed down 3/4 at 859 3/4. This was 3 1/4 up from the low and 5 1/4 off the high.
December Chicago wheat traded steady on the day and saw gains early in the session following reports that the US sold wheat to Japan overnight and on the very poor crop condition ratings released earlier this week.
The export tender lineup is thin this week but Bangladesh issued a tender to buy 50,000 tonnes and Syria is tendering for 100,000 tonnes of soft wheat. South Korea bought 48,200 tonnes of milling wheat and half will come from the US and half from Canada.
Japan's Ministry of Agriculture bought 134,693 tonnes of food wheat from the US, Canada, and Australia overnight. The head of the Russia Grain Union estimated 2012/13 ending stocks at 6 million tonnes vs. USDA estimates of 4.94 and against year ago levels of 10.44 million tonnes.
This would be a critically low level and would likely require a successful harvest next year to enable Russia to be active in the export market.
The news was supportive to wheat futures today but reports surfaced that Iraq bought 350,000 tonnes of wheat from Australia, Russia, and Canada limited gains. Many market participants expect US wheat exports to increase in 2013 but the export pace appears sluggish at the moment.
December Oats closed down 6 1/2 at 370. This was 1 up from the low and 9 3/4 off the high.
