December Corn finished down 11 1/2 at 739 1/2, 12 off the high and 3 1/2 up from the low. March Corn closed down 11 at 742 1/2. This was 3 1/2 up from the low and 11 1/2 off the high.
December corn closed 11 1/2 cents lower on the session but managed to close up 1 3/4 cents higher for the week. Sluggish export demand and weakness in gold and crude oil plus a surge higher in the US dollar helped to drive corn market sharply lower on the day.
Instead of positioning for the market fundamentals ahead, hedge funds seem to be more concerned with getting out of the way of potential financial instability into the elections and markets like corn where funds hold a hefty net long position were under pressure.
With trend-following fund traders holding a net long position of 222,932 contracts as of October 23rd and open interest up another 16,000 contracts since that report, traders appear concerned over the possibility of long liquidation selling ahead.
The market consolidated in a relatively tight trading range in October and consolidation is normally a continuation pattern. Weekly export sales came in at just 167,900 metric tonnes.
Cumulative corn sales stand at 37.4 per cent of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 43.2 per cent.
Average weekly sales over the past four weeks are just 120,300 tonnes as compared with 411,900 tonnes as an average necessary each week to reach the USDA projection.
Talk of the potential for higher production for the report next week helped to pressure the market as well.
November Rice finished down 0.055 at 14.71, equal to the high and 0.02 up from the low.
Soy Futures Closed Lower
November Soybeans finished down 31 1/2 at 1527, 31 off the high and 2 1/4 up from the low. January Soybeans closed down 33 1/4 at 1526 3/4. This was 2 1/2 up from the low and 33 1/4 off the high.
December Soymeal closed down 8.4 at 475.9. This was 0.4 up from the low and 8.3 off the high.
December Soybean Oil finished down 1.17 at 49.26, 1.37 off the high and 0.15 up from the low.
January soybeans closed 33 1/4 cents lower on the session and down 37 cents for the week. The market turned sharply lower into the pit opening as a bearish and "risk off" tone emerged from hedge funds with the market down 22 cents into the mid-session.
After bullish and "risk on" news over employment, very few commodity markets saw much is the way of support. The surge in the US dollar continued after the news was release but gold and crude oil turned sharply lower on the day and a general long liquidation selling trend emerged from fund traders.
Talk that China crush margins are sluggish and ideas that the South America weather is shifting from threatening weather of the past week to improving crop condition weather for the next week helped to pressure.
Central and Northern Brazil weather is cooling with more rain for the region and southern Brazil and Argentina looks to receive relief from the wet pattern over the next week which could boost planting progress.
Weekly export sales for soybeans came in at 741,200 metric tonnes for the current marketing year and 19,400 for the next marketing year for a total of 760,600 which was higher than expected.
Cumulative soybean sales stand at 74.8 per cent of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 51.7 per cent.
Sales of just 195,000 metric tonnes are needed each week to reach the USDA forecast. Meal sales came in at 73,200 metric tonnes which was below trade expectations.
Cumulative soybean meal sales stand at 52.8 per cent of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 33.6 per cent.
Sales of 66,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 28,500 metric tonnes. Sales of 6,000 metric tonnes are needed each week to reach the USDA forecast.
Aggressive long liquidation selling in a wide range of commodity markets appears to be the key negative force today. Talk of the potential for higher yields for next week's report helped to pressure the market as well.
Wheat Futures Closed
December Wheat finished down 4 at 864 1/2, 9 1/4 off the high and 5 3/4 up from the low. March Wheat closed down 4 3/4 at 878 1/2. This was 5 up from the low and 10 off the high.
December Chicago wheat closed 4 cents lower on the session but managed to close 3/4 of a cent higher for the week. The market jumped more than 14 cents off of the early lows to trade moderately higher on the day into the mid-session.
At one point, July KC wheat was up 14 1/4 cents on the session and up to a 17-month high. Deteriorating crop conditions in the plains, a forecast for warm and dry weather over the next week and news of another downgrade in Argentina production were all seen as positive forces which helped to support.
Kansas City wheat gained on Chicago wheat today; especially for the new crop. Weekly export sales came in at 362,900 metric tonnes which was near the low end of trade expectations.
As of October 25, cumulative wheat sales stand at 47.0 per cent of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 62.2 per cent. Sales of 530,000 metric tonnes are needed each week to reach the USDA forecast.
December Oats closed down 13 1/4 at 367. This was 1 1/2 up from the low and 13 3/4 off the high.
