December corn closed 7 1/2 cents lower on the day as a more active harvest expectation over the near-term and a weak cash basis level on the day after talk of aggressive buying of US corn from China helped to spark more aggressive selling.
The market and was still trading near unchanged on the session near 7:00 am but was moderately lower on the day into the pit opening and was down as much as 9 1/2 cents on the day into the mid-session.
China buying rumors, short-covering and wet weather helped to support the bounce yesterday but focus of attention is quickly back on much higher than expected yields being reported by producers.
Trade estimates for the October USDA production report (which will not be released this week) were seen as supportive with average estimates reflecting a slight reduction in production from the September update due to losses in acres.
However, selling was active as traders seem to be following the producer yield estimates more closely and there is talk that fields are drying up quickly in the Midwest and harvest is picking up quicker than expected following weekend rains.
November Rice finished down 0.07 at 14.755, 0.075 off the high and equal to the low.
Soy Futures Closed Lower
November Soybeans finished down 7 3/4 at 1288 3/4, 17 off the high and 5 up from the low. January Soybeans closed down 9 1/4 at 1287 3/4. This was 4 1/2 up from the low and 17 1/4 off the high.
December Soymeal closed down 5.8 at 414.9. This was 2.3 up from the low and 8.4 off the high.
December Soybean Oil finished up 0.53 at 40.43, 0.25 off the high and 0.52 up from the low.
November soybeans closed moderately lower on the day led by weakness in meal and corn and ideas that the market needs to absorb a more active harvest progress over the near-term.
The market traded as much as 1 1/4 cents higher overnight and took out yesterday's highs but there was a lack of new buying support and the market pushed down to trade just slightly higher on the session into the pit opening.
Talk of good weather in South America and good weather for harvest activity in the US in the forecast helped to spark the selling.
Trade estimates for the October USDA production report (which will not be released this week) were seen as somewhat supportive with average estimates reflecting just a minor increase in production from the September update.
However, focus remains on higher than expected yields and the outlook for a record Brazil crop for the coming growing season.
The advancing harvest and weakness in the US stock market were seen as bearish forces to spark long liquidation selling. December meal pushed up to the highest level since September 19th before closing 1.38% lower.
Wheat Futures Closed Lower
December Wheat finished down 2 1/4 at 692 1/2, 7 1/4 off the high and 4 1/2 up from the low. March Wheat closed down 1 at 703 1/2. This was 5 3/4 up from the low and 5 3/4 off the high.
The lower close after first moving up to a new high for the move might be seen as a bearish short-term technical development.
Kansas City and Minneapolis wheat closed higher. The early rally failed to take out key psychological resistance at 700 before the market drifted low.
Weather forecasts seem to be improving for getting more crops planted in the Black Sea region but fears of a smaller 2014 crop from the region remain as a concern.
December Oats closed down 3/4 at 316 3/4. This was 1 3/4 up from the low and 2 off the high.
