American Corn Futures closed higher Tuesday
July corn traded unchanged early in the session but managed to find support late in the day as cash…July corn traded unchanged early in the session but managed to find support late in the day as cash basis levels remain above delivery ahead of first notice day.
Ethanol processors remain aggressive bidders and the river market was mostly steady today. December corn traded lower throughout the session following a modest improvement in the crop conditions released yesterday and finished the day in the red.
Many in the trade continue to see improvement in the crop going forward given the non-threatening weather outlook for the remainder of June and well into the first half of July. The southeast and delta region may dry down moderately over the next week and showers in early July will be needed.
It remains far too wet in central and northeast IA, southern MN, and southern WI but scattered showers and 80-90 degree temperatures are expected for the remainder of the Corn Belt which will boost growth and keep a strong soil moisture base for the crop.
The trade was also positioning for the highly anticipated stocks and planting intentions report on Friday where many are looking for a 2 million acre adjustment lower for corn acres to 95.3 million.
July Rice finished down 0.045 at 15.57, 0.07 off the high and equal to the low.
Soy Futures Closed Higher
July Soybeans finished up 13 1/4 at 1525 1/4, 2 1/2 off the high and 18 1/4 up from the low. November Soybeans closed up 5 at 1278 1/2. This was 9 1/4 up from the low and 4 3/4 off the high.
July Soymeal closed up 7.8 at 458.8. This was 7.8 up from the low and 0.7 off the high.
July Soybean Oil finished down 0.41 at 47.14, 0.73 off the high and 0.07 up from the low.
The soybean market traded stronger throughout the session led by gains in the July contract. The crop conditions and planting report had a mixed bias for market direction in the new crop market with conditions ratings showing modest improvement but planting progress came in under market estimates.
Underlying support in the old crop continue to stem from firm interior cash markets, mostly from processors.
A well-followed oilseed market analyst released statements today that suggest prices for soybeans and major oilseeds are likely to fall in the months ahead as harvest begins in North America and Europe.
The analyst estimates that total global 13/14 production for the 10 major oilseed crops could reach 484.50 million tonnes, up from 463.50 million in 12/13.
Statistics Canada estimated that Canadian farmers will seed 19.7 million acres of canola, down 8% from 2012/13 but up from the prior estimate of 19.1 due to a decline in wheat intentions.
Thoughts that US soybean planted acreage may come in much small than many analysts anticipate due to delays in IA, MN, and WI helped to support to the new crop market throughout the session.
Wheat Futures Closed Lower
July Wheat finished down 3 1/4 at 675 3/4, 9 1/2 off the high and 1/2 up from the low. December Wheat closed down 2 1/2 at 699 1/2. This was 1/2 up from the low and 9 1/4 off the high.
Wheat futures traded higher early in the day but saw pressure late in the session to finish lower on hedge pressure as the harvest pace improves across the US.
Thoughts that demand from Brazil, Latin American, SE Asia, and China will make up for lost demand in the Middle East and North Africa helped to support. Harvest continues to push forward across the Midwest with a continued trend of "better than expected" yields for each market.
The Chicago CIF market fell sharply lower today as a surge of fresh supply hits the market but the bushels are quickly being absorbed by feeders and exporters who have commitments for the 13/14 crop year.
Statistics Canada estimated that farmers in Canada will plant 25.9 million acres of all-wheat in 2013/14, the most in 12 years but down from the April estimate of 26.6 million. The trade was looking for 26.2 million acres.
It was also reported midday that a large international trading firm increased their German wheat production forecast to 24.18 million tonnes in 2013/14, up from 22.33 in 2012 and up from their prior forecast of 23.35 million.
Good rainfall in the month of May followed by warmer temperatures in June has greatly improved the production outlook for Germany and France.
July Oats closed down 5 at 387 1/4. This was 1 1/4 up from the low and 8 1/4 off the high.
