Today Grain Future

Corn futures pulled back on Friday. Old crop supplies were under pressure from signs of a somewhat weaker interior basis. Some Mid Western elevators and processors have moved their cash bids to be based off of the September contract. Basis bids at the Gulf in NOLA for loaded barges are record high for this time of year at $1.20 over the July 2013 futures price in Chicago. The new crop is finding support from weather concerns, particularly hot and dry weather in the southwest part of the Corn Belt. Strategie Grains cut projected EU corn production by 400,000 MT from its prior estimate. In the weekly commitment of traders report published by the CFTC, managed money accounts reduced their net long position in corn by 8,112 contracts.

Jul 13 Corn closed at $6.61 3/4, down 11 1/2 cents,
Sep 13 Corn closed at $5.92, down 6 1/4 cents,
Dec 13 Corn closed at $5.56 1/4, down 4 1/4 cents
Mar 14 Corn closed at $5.67, down 4 cents

Soybean prices lost further ground today, with November the weakest on reports of active planting in Iowa and forecasts for above normal temps to dry out soils. Palm oil prices hit a three month high before retreating. South Korea’s largest animal feedmiller, Nonghyup Feed Inc bought 55,000 MT of Argentine soybean meal for October 15 arrival. Brazil’s ABIOVE lowered their 2012/13 soybean production estimate to 81.6, .5 lower than their last estimate. In the weekly commitment of traders report published by the CFTC, managed money accounts reduced their net long position in soybeans by 19,147 contracts in the seven days ending June 11.

Jul 13 Soybeans closed at $14.93 1/4, down 4 1/4 cents,
Aug 13 Soybeans closed at $14.13 3/4, down 7 cents,
Sep 13 Soybeans closed at $13.15 3/4, down 9 3/4 cents,
Nov 13 Soybeans closed at $12.73 1/2, down 11 1/2 cents,
Jul 13 Soybean Meal closed at $447.70, up $2.10,
Jul 13 Soybean Oil closed at $48.02, down $0.38

Wheat futures gave back morning gains due to pre-weekend hedge pressure and profit taking after a nice mid-week rally. Chicago was 2 ½ to 3 cents lower today, while KC was down ½ to 4 1/4 cents. MPLS was UNCH to 2 ½ lower, still supported by ideas of reduced acreage. According to the USDA, Polish wheat production is now expected to reach 9.2 MMT, which is a 7% increase over last year. ABARE (Australia) is looking for production there to grow to 25.4 MMT vs. 22.1 MMT last year. That crop won’t be harvested until the end of 2013. In the weekly commitment of traders report published by the CFTC, managed money accounts added 12,734 contracts to their net short position in Chicago Wheat. Their KC wheat position is now net short 3,912 contracts after a net change of 6,186 more short positions compared to last week.

Jul 13 CBOT Wheat closed at $6.98, down 2 1/2 cents,
Jul 13 KCBT Wheat closed at $7.36 1/2, down 1/2 cent,
Jul 13 MGEX Wheat closed at $8.14, unch,
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