March Corn finished down 1 3/4 at 691 1/2, 4 off the high and 2 1/4 up from the low. May Corn closed down 2 at 694 1/2. This was 2 3/4 up from the low and 3 3/4 off the high.
March corn traded slightly lower on the day and the December 2013 contract hit a fresh 5-month low. Slow export demand and poor ethanol margins continue to weigh on futures.
Outside markets turned negative midday on Fiscal Cliff fears. This sent the US Dollar Index higher which pressured the broader commodity complex.
Cash corn basis was firm midday as futures moved lower and on light farmer sales. The trade is looking ahead to the January 11th stocks report with some expecting a modest cut to the 2012/13 ending stocks estimate of 647 million bushels.
Thoughts that feed demand has exceeded market expectations and acreage abandonment is higher than current projections are providing some long term support to futures.
January Rice finished down 0.155 at 14.995, equal to the high and equal to the low.
Soy Futures Closed Lower
January Soybeans finished down 5 1/2 at 1419, 18 off the high and 3 1/4 up from the low. March Soybeans closed down 4 at 1414 1/2. This was 3 1/4 up from the low and 15 off the high.
January Soymeal closed down 1.5 at 429.8. This was 0.6 up from the low and 4.6 off the high.
January Soybean Oil finished unchanged at 48.29, 0.52 off the high and 0.2 up from the low.
March soybeans traded lower on the day on weaker outside markets and lack of any fresh demand-side data. Outside markets turned negative midday on fears that Congress may not agree on budget and tax reform before year-end.
The broader commodity complex along with US equities traded lower for most of the session as a result. CIF soybean basis bids in the Gulf firmed today as futures slid lower and on rumors that China may have bought additional soybean cargos overnight.
Demand remains strong for US soybeans but with Brazilian harvest just about a month away, some in the market suggest the robust sales pace by the US may slow down.
South American weather remains mostly favorable. Light showers will be seen in southern and central Brazil while the northeastern regions trends a bit drier.
Argentina is expected to dry down this week with a quieter pattern expected into early January which should ease wetness concerns.
Wheat Futures Closed Lower
March Wheat finished down 2 1/4 at 772 1/4, 5 3/4 off the high and 7 3/4 up from the low. May Wheat closed down 2 1/4 at 782 1/4. This was 7 up from the low and 5 3/4 off the high.
KC and Chicago wheat traded lower on the day but recovered off the session lows late in the session on rumors that US exporters may have sold wheat cargos on the slide in prices over the last 48 hours.
Early losses were triggered by a "risk off" tone that swept across the outside markets as many fear no fiscal deal will be reached in Washington DC.
Additional pressure came from technical selling and the absence of any significant export tenders this week. Chicago wheat remains a stiff discount to other origins around the world and March wheat ended the day close to an 80 cent premium to March corn.
Both of which could be supportive demand features in 2013. The updated drought monitor shows very little improvement in conditions in the western plains with most of the wheat growing regions in KS, OK, and NE is extreme to exceptional drought status.
Traders noted that volume was light on the move lower midday.
March Oats closed down 7 at 353. This was 1 1/4 up from the low and 7 1/2 off the high.
