December corn closed 5 3/4 cents higher on the session but the strong recovery from the lows still left the market down 11 3/4 cents for the week.
The market traded as much as 10 1/4 cents lower on the day early in the session led by soybean weakness but support held near Tuesday's lows and the market managed to find fairly active short-covering to support the strong gains off of the lows.
News from the EPA that they decided to hold the current ethanol mandate in place may have provided some psychological support. Traders did not expect a change in the mandate but the news appears to have sparked some short-covering; especially after the market failed to make a downside break-out.
In addition, the EPA indicated that the waiver would only reduce corn prices by about 1 per cent. Weekly export sales for corn came in at 103,900 metric tonnes for the current marketing year and 208,200 for the next marketing year for a total of 312,100.
As of November 8th, cumulative corn sales stand at just 38.2 per cent of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 45.6 per cent. Sales of 425,000 metric tonnes are needed each week to reach the USDA forecast.
January Rice finished down 0.02 at 14.845, 0.045 off the high and 0.045 up from the low.
Soy Futures Closed Lower
January Soybeans finished down 35 3/4 at 1383 1/4, 44 1/2 off the high and -17 3/4 up from the low. March Soybeans closed down 16 at 1368. This was 12 up from the low and 22 1/4 off the high.
December Soymeal closed down 5.9 at 424.6. This was 3.7 up from the low and 7.7 off the high.
December Soybean Oil finished down 0.41 at 47.05, 0.65 off the high and 0.44 up from the low.
January soybeans closed 18 3/4 cents lower on the day and down 68 cents for the week. The market was down as much as 29 3/4 cents into the pit opening with futures moving down to the lowest level since June 22nd which was about the time that the mid-west turned dry.
Weakness in outside market forces, news from China that crushers had cancelled 600,000 tonnes of soybean purchases for December and January delivery and a non-threatening weather outlook for South America into early next week were seen as bearish forces.
Impressive demand news has not been enough in recent weeks to slow the active fund selling and the market stayed under pressure even with better than expected weekly sales news.
Sales for soybeans came in well above expectations at 559,700 metric tonnes for the current marketing year and 25,500 for the next marketing year for a total of 585,200.
As of November 8th, cumulative soybean sales stand at 77.0 per cent of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 56.7 per cent. Sales of 187,000 metric tonnes are needed each week to reach the USDA forecast.
Net meal sales came in at 234,600 metric tonnes for the current marketing year and none for the next marketing year for a total of 234,600 which also exceeded expectations.
Cumulative meal sales stand at 59.2 per cent of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 38.7 per cent. Sales of 59,000 metric tonnes are needed each week to reach the USDA forecast. Oil sales came in at 21,000 metric tonnes.
Sales of 4,600 tonnes are needed each week to reach the USDA forecast.
The market saw solid gains off of the early lows as corn prices pushed higher on the day, wheat recovered from the lows and the stock market managed to push higher on the day.
December meal closed moderately lower on the day as well and managed to push to the lowest level since July 3rd while December oil closed moderately lower after first challenging Monday's 26 month low.
Wheat Futures Closed Lower
December Wheat finished down 7 1/2 at 838, 12 off the high and 8 1/2 up from the low. March Wheat closed down 7 1/2 at 853 3/4. This was 8 3/4 up from the low and 11 3/4 off the high.
December Chicago wheat closed 7 1/2 cents lower on the session but down 48 1/2 cents for the week. The market traded moderately lower on the day into the mid-session as weakness in soybeans, a strong US dollar and the slow pace of exports helped to pressure.
Weekly export sales came in about as expected at 314,600 metric tonnes which was higher than last week but still well short of a pace of 548,700 tonnes needed each week to reach the USDA projection for the year.
Cumulative wheat sales stand at 48.7 per cent of the USDA forecast for 2012/2013 (current) marketing year versus a 5 year average of 64.7 per cent.
While wheat sales were sluggish, the market found underlying support from ideas that US wheat is now competitive to other world suppliers and that future tender results might include more US wheat.
Corn weakness early today helped to pressure but to higher on the day for corn support the solid gains off of the early lows. With a dry forecast for the central and southern plains and record low crop ratings already, July KC wheat managed to bounce near 12 cents off of the lows to close just slightly lower on the day.
December Oats closed unchanged at 364 1/2. This was 4 up from the low and 3/4 off the high.
