July Corn finished down 14 1/2 at 614 3/4, 16 3/4 off the high and 1 up from the low. December Corn closed down 12 1/4 at 637 3/4. This was 2 1/4 up from the low and 14 3/4 off the high.
The July contract established a broad range very early in the session and spent much of the session chopping lower from the mid point of that range. The July contract broke through the low end of the day's range late in the session before closing just off the new low. Weather forecasts that were drier than previously expected were blamed for much of the weakness today. This is expected to allow farmers to accelerate the planting rate for corn as the week wears on. Disappointing export inspections were said to have added to the negative tone. This week's export inspections for corn were 34.263 million bushels. Weekly inspections of 48.084 million bushels are needed to reach the USDA projection. Total inspections to date stand at 68.7% of the USDA forecast for the season compared to a 5-year average of 64.5% for this time of the year. The USDA will issue its Crop Progress Reports this afternoon at 3 pm and traders are expecting progress at about 45-50% according to floor traders. This compares to 71% planted at this time last year and a 10-year average of 72%.
July Soybeans finished down 15 1/2 at 1342 1/2, 33 off the high and 4 1/4 up from the low. November Soybeans closed down 14 1/2 at 1289 1/4. This was 3 up from the low and 29 off the high.
July Soymeal closed unchanged at 338.5. This was 3.8 up from the low and 7.5 off the high.
July Soybean Oil finished down 0.72 at 61.28, 1.33 off the high and 0.19 up from the low.
Soybeans, meal and oil all opened higher and came under moderate selling pressure early in the session. Soybean prices then firmed into the early mid session, but fell to new lows later in the morning and again after 12:00. Soybeans closed lower on the day in both old and new crop contracts. Oil lost to meal despite the sharp rally overnight in Malaysian palm oil. Forecasts of drier weather than had been forecast late last week were said to have supported soybeans early on ideas that more rapid planting progress in corn this week could result in fewer acres planted to soybeans. Farmers in Argentina are trying to enlist the support of regional governors in their battle with the national government over export taxes. Farm organizations there resumed their strike last week with an ending date for the strike scheduled for May 15th. No word yet on whether or not the strike will be extended past that date. The Argentine government also said today that various weather problem have negatively impacted late-planted soybeans. Problems included frost, hail and dry weather in that nation's top soybean growing province. The USDA will issue its latest estimates of planting progress this afternoon. The 10-year average for soybean plantings at this time of is 27%. This week's export inspections were 13.1 million bushels. Weekly inspections of just 8 million bushels are needed to reach the USDA projection. Total sales to date stand at 87.2% of the USDA forecast for the season compared to a 5-year average 86.4% for this time of the year.
Wheat Market Recap Report for 5/12/2008
July Wheat finished up 1 at 805 1/2, 6 1/4 off the high and 10 1/2 up from the low. December Wheat closed up 3/4 at 840 1/4. This was 10 1/4 up from the low and 5 1/4 off the high.
The July wheat contract established the range for the day in early trade and finished the day slightly higher and near the mid point of that range. Rain across much of the Plains was blamed for the early selling in wheat along with weakness in corn and a continuation of the sell off that started at the end of last week. That selling followed reports that the US winter wheat crop will be even larger than previously expected. Argentina's Agriculture Secretariat said today that wheat planting is going slowly in that country's northern farming areas and that this could result in a smaller planted area. Some analysts indicate that turmoil over export taxes and the closure of the wheat export registry for much of this year are having a detrimental effect on planting intentions in wheat. The Government of Algeria announced today that it has enough wheat to meet domestic needs. It is one of the world's largest importers of wheat. The announcement was thought to be in response to fears of a domestic shortage. This week's export inspections were 20.590 million bushels. Weekly inspections of 32.532 million bushels are needed to reach the USDA projection. Total inspections to date stand at 91.7% of the projected total compared to a 5-year average of 91.1%. Reports of a freeze in the central Plains over the weekend failed to support the market as agronomists say that the crop is not far enough advanced this year for a freeze to cause serious damage. Wheat also shrugged off reports that the large wheat producing state of New South Wales in Australia is experiencing drought in 48% of its wheat areas.
July Oats closed down 3 at 410. This was 1 up from the low and 1 off the high.