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Corn closes mixed

06/29/2011 @ 9:39am

CHICAGO, Illinois (Agriculture.com)--Despite a sharply higher open, the CME Group grain and soybean markets pulled back Wednesday. Traders adopted a precautionary stance, ahead of Thursday's USDA June Acreage and Quarterly Stocks Reports at 7:30am CDT.

The Dec. corn futures closed 2 1/2 cents lower at $6.50 1/2, while the July corn contract closed up 15 cents at $6.98. The Nov. soybean contract settled 4 cents higher at $13.23. The Sep. wheat futures ended 2 1/2 cents higher at $6.74 1/4. The Dec. soybean meal futures contract ended $0.60 per short ton lower at $338.10 and Dec. soyoil futures closed $0.42 higher at $57.01.

In the outside markets, the NYMEX crude oil is $1.95 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 63 points.

Tim Hannagan, PFGBest.com senior grain analyst, says the pullback in prices from the open is not surprising. "It's typical that three days prior the report the traders holding 'short' positions buy out and speculators buy long. So, off the opening highs today the traders holding weak 'long' positions got out, as they don’t want to risk Thursday's report. 

Meanwhile, the cash market may be indicating China is buying U.S. corn, one CME Group floor trader, requesting anonymity, says. "The cash corn market is up sharply, after starting higher last night as well.  CiF corn for August traded +90, eliciting rumors of Chinese buying. We think there was a variety of destination business executed, as they (China) are worried about report and saw a large flat price break. So, all that enters into the comeback of the grain markets today," he says.


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