March corn traded lower on the day on light profit taking and pressure from a weaker wheat market. Above normal precipitation in Argentina and below normal in Southern Brazil continues to help the market move higher but it seems the recent run to the upside needed a break and traders took profits.
Export sales were disappointing which likely triggered the move lower. Sales came in at 236,100 tonnes for the current marketing year and 27,400 for the next marketing year for a total of 263,500.
As of November 22nd, cumulative corn sales stand at 42 per cent of the USDA forecast for the current marketing year versus a 5 year average of 49 per cent.
Sales of 421,000 tonnes are needed each week to reach the USDA forecast. The last two weeks of sales have been slightly better than earlier in the crop year but cheaper corn continues to flow out of South America and Ukraine.
Some traders suggest that Asia may be short corn supplies from January forward which could mean the US may become very active in the export market in 2013.
January Rice finished down 0.08 at 15.11, equal to the high and equal to the low.
Soy Futures Closed Higher
January Soybeans finished up 1 3/4 at 1448, 12 off the high and 6 3/4 up from the low. March Soybeans closed up 6 at 1441. This was 9 1/4 up from the low and 9 1/4 off the high.
December Soymeal closed up 2.8 at 442.7. This was 3.7 up from the low and 2.9 off the high.
December Soybean Oil finished down 0.34 at 49.77, 0.69 off the high and 0.03 up from the low.
January soybeans ended the day near the unchanged. Early gains eroded near 11 am cst after outside markets lost momentum due to negative comments in regards to the Fiscal Cliff by a Republican leader.
Early strength was linked speculation that China will be in the market for 3-4 million tonnes of soybeans in the coming weeks after canceling cargos earlier this month.
Net weekly export sales for soybeans came in at 319,100 tonnes for the current marketing year and as of November 22nd, cumulative sales stand at 75 per cent of the USDA forecast for the current marketing year vs. a 5 year average of 61 per cent.
Net meal sales came in at 365,100 tonnes for the current marketing year and cumulative meal sales stand at 64 per cent of the USDA forecast vs. a 5 year average of 42 per cent.
Net oil sales came in at a whopping 121,500 tonnes for the current marketing year and 1,000 for the next marketing year for a total of 122,500.
As of November 22nd, cumulative soybean oil sales stand at 105 per cent of the USDA forecast vs. a 5 year average of 32 per cent. At this point, sales exceed the current USDA export estimate for the current crop year.
Wheat Futures Closed Lower
December Wheat finished down 6 3/4 at 869 1/4, 10 1/2 off the high and 4 1/4 up from the low. March Wheat closed down 5 3/4 at 885 1/2. This was 4 3/4 up from the low and 9 1/2 off the high.
Chicago and KC wheat traded lower into the closing bell on light profit taking following an export sales report that came in below market expectations.
Net weekly export sales came in at 279,300 tonnes for the current marketing year and no sales were reported for the next marketing year.
As of November 22nd, cumulative wheat sales stand at 54 per cent of the USDA forecast for the current marketing year vs. a 5 year average of 68 per cent. Sales of 506,000 tonnes are needed each week to reach the USDA forecast.
The US missed out on the 50,000 tonne Algerian tender today and it's being reported that the purchase was for 375,000 tonnes, likely French origin.
Poor weather conditions in the western plains continue to support the US wheat markets this week. No significant precipitation is expected in the next two weeks.
The EU granted export licenses for 438,000 tonnes of soft wheat bringing the 2012/13 season total to 7.3 million tonnes vs. 6.5 for the same period last year.
December Oats closed down 10 at 360 3/4. This was 3/4 up from the low and 11 3/4 off the high.
