September Corn finished down 18 1/4 at 522 1/2, 16 3/4 off the high and 1 up from the low. December Corn closed down 12 1/2 at 485 1/2. This was 3 1/2 up from the low and 11 off the high.
December corn punched through the 490 level early in the session and never looked back. The new crop contract traded down double digits but settled just off session lows.
September corn led the complex to the downside on liquidation in the Sept/Dec spread which may have been triggered by reports that harvest had begun in areas of Louisiana. CIF and interior basis levels continue to be well supported, mostly due to domestic demand influences as export interest remains limited except from China and Mexico.
The USDA announced this morning that US private exporters sold 106,400 tonnes of corn to Mexico. About 11,000 tonnes of the total were bought for the old crop marketing year. Weather points negative for the market after steady rainfall was recorded in areas of eastern NE, central IA, and northern MO.
Crop conditions in the eastern Corn Belt remain favorable. IA conditions remain dry for select areas of the state but the forecast calls for additional rainfall in the next 2 weeks.
This mixed with the mild and cool temperatures have the market leaning towards a bearish supply total for the 2013/14 marketing year. Crude oil was also trading lower today which helped to pressure corn.
September Rice finished up 0.365 at 15.77, equal to the high and equal to the low.
Soy Futures Closed Lower
August Soybeans finished down 57 3/4 at 1462 1/2, 63 3/4 off the high and 2 1/2 up from the low. November Soybeans closed down 28 1/4 at 1260 1/4. This was 1 1/4 up from the low and 35 3/4 off the high.
August Soymeal closed down 14.6 at 487.8. This was 5.1 up from the low and 33.2 off the high.
August Soybean Oil finished down 0.63 at 44.78, 0.83 off the high and 0.06 up from the low.
The soybean market traded down sharply today, led by losses in the August contract which was down over 55 cents.
November soybeans traded down 10-12 cents midday but came under heavy sell pressure late in the session to end the day over 25 cents lower. Meal and oil are also trading down with December soybean oil trading at its lowest level since June 28th.
Basis fell apart in the interior of the US and in the export market which pressured front-end calendar spreads in meal and soybeans lower.
The nearby CIF market was indicated to be down 70 cents for July shipment and 25 cents in the first half August shipment slot.
There was some talk that the Chinese intended on releasing 3 million tonnes of inventory out of reserves to their domestic market for crushers but no confirmation has been made. The move could spark some export sales cancelations or mean that open old crop sales with the US are rolled into the 13/14 marketing year.
Weather is seen as a negative force for the new crop soybean market after steady rainfall fell in central IA, southern WI, and northern IL in the last 48 hours.
Temperatures are holding at moderate levels and appear non-threatening to the crop. Scouts in the southeast and delta indicate that soybean yield potential looks impressive so far given recent moisture trends in the region.
Wheat Futures Closed Lower
September Wheat finished down 6 at 653 3/4, 5 3/4 off the high and 3 1/4 up from the low. December Wheat closed down 5 3/4 at 665 1/2. This was 3 1/2 up from the low and 5 3/4 off the high.
September Chicago wheat pushed to a new low for the move today but managed to close above its early July lows as buyers came into the market near the end of the session.
The KC market extended its premium to Chicago futures throughout the day and wheat vs. corn spreads pushed higher. European wheat futures fell to a new contract low this morning and the slide lower was triggered by weakness in the US market but also due to favorable harvest conditions and production potential.
There was some chatter that China may be a buyer on a significant dip in the Chicago futures market but no confirmation has been made of any trades. Basis was steady in the western Corn Belt for KC wheat.
Traders noted applications of trains were being made as we inch towards the end of the month. New crop harvest is just in its beginning stages in NE. As of July 22nd, Russia had harvested 25.4 million tonnes of wheat, up 9 million from last year.
The average yield at this point was estimated at 3.15 tonnes per hectare as compared with 2.54 at the same point last year. Russia continues to offer wheat at a discount to the US into the Middle East and North Africa.
The government is expected to reenter the market in August and September to purchase supplies to rebuild inventory reserves but at that point the EU will have a steady stream of supplies to fill world demand.
September Oats closed down 4 1/4 at 352 3/4. This was equal to the low and 6 off the high.
