December corn traded higher on the day on positive export data, less than favorable weather conditions in Argentina, and a sharply lower US Dollar.
Risk assets saw a boost today on positive European and Chinese economic data. Net weekly export sales for corn, came in at 769,800 tonnes for the current marketing year and 188,800 for the next marketing year for a total of 958,600 tonnes.
This was the second highest sales number for this crop year and Japan was a notable buyer. As of November 15th, cumulative corn sales stand at 41 per cent of the USDA forecast for current marketing year vs. a 5 year average of 47 per cent.
Sales of 417,000 tonnes are needed each week to reach the USDA forecast. Additional support was linked to thoughts that the US export pace may pick up in 2013 amid tightening domestic supplies.
Reports that recent rainfall in Argentina was heavier than expected may have also provided a boost to corn prices.
January Rice finished up 0.205 at 15.035, equal to the high and equal to the low.
Soy Futures Closed Unchanged
January Soybeans finished unchanged at 1418 3/4, 8 1/4 off the high and 4 1/4 up from the low. March Soybeans closed unchanged at 1403. This was 4 up from the low and 8 1/4 off the high.
December Soymeal closed up 0.7 at 428.6. This was 2.2 up from the low and 6.1 off the high.
December Soybean Oil finished up 0.51 at 49.04, 0.11 off the high and 0.29 up from the low.
January soybeans traded sharply higher on the day on positive export data, a lower dollar, and fears that South American weather may disrupt supply pipelines.
Positive economic data out of China and Europe pushed the dollar sharply lower which triggered rallies in metals and stocks today. This helped the grain and soybean market open in positive territory.
Additional support was linked to positive export demand data for soybeans, meal, and oil last week. Net weekly export sales for soybeans came in at 543,600 tonnes for the current marketing year and none for the next marketing year.
This was in line with market estimates and supportive to the trade throughout the day. As of November 15th, cumulative soybean sales stand at 74 per cent of the USDA forecast for the current marketing year vs. a 5 year average of 59 per cent.
Sales of 231,000 tonnes are needed each week to reach the USDA forecast. Net meal sales totaled 197,900 tonnes which was also in line with market expectations and cumulative meal sales stand at 59 per cent of the USDA forecast for current marketing year vs. a 5 year average of 41 per cent.
Sales of only 65,000 tonnes are needed each week to reach the USDA forecast. Net oil sales totaled 124,100 tonnes and the USDA reported that US exporters sold 20,000 tonnes of oil to and unknown destination for the 2012/13 crop year.
As of November 15th, cumulative soybean oil sales stand at 83 per cent of the USDA forecast for the current marketing year vs. a 5 year average of 30 per cent. Sales of only 2,000 tonnes are needed each week to reach the USDA forecast.
Wheat Futures Closed Higher
December Wheat finished up 2 3/4 at 848, 5 3/4 off the high and 2 3/4 up from the low. March Wheat closed up 2 1/4 at 862. This was 2 3/4 up from the low and 5 1/2 off the high.
December Chicago wheat traded slightly higher on the day in what was described as a low volume day due to the Thanksgiving holiday. Support was linked to positive export demand and dry weather conditions in the western plains.
Other major world exporters continue to add sales while the US continues to struggle to find new business which could limit gains in the short term.
Despite this, export sales were impressive this morning with sales reported at 635,400 tonnes for the current marketing year and 22,000 for the next marketing year for a total of 657,400.
As of November 15th, cumulative wheat sales stand at 53 per cent of the USDA forecast for current marketing year vs. a 5 year average of 66 per cent. Sales of 498,000 metric tonnes are needed each week to reach the USDA forecast.
Additional support was linked to news that Brazil may have bought German wheat which could imply that there are major issues with the quality and quantity of the wheat crop in Argentina.
Little to no rain is expected in the western plains to finish out this month which could leave as much as a third of the wheat crop with poor establishment as it enters dormancy.
December Oats closed down 1 at 369. This was 4 1/2 up from the low and 5 1/2 off the high.
