CORN: September Corn finished up 9 at 745 1/2, 3 off the high and 19 1/4 up from the low, the CME reported. March Corn closed up 9 1/4 at 758 1/2. This was 19 3/4 up from the low and 2 3/4 off the high.
December corn moved from moderately lower on the day to close higher and near the highs as end-user demand was active on the early break. Talk of potential frost issues later this week, ideas that the USDA will lower planted area and maybe yield in the next monthly report and talk of a short-term oversold condition helped to pressure, the CME said.
The USDA pegged production at 12.497 billion bushels from 12.914 billion last month. This was slightly above expectations. Average yield was pegged at 148.1 bushels per acre, compared with trade expectations at 148.8 and 153 last month. US ending stocks for 2011/12 season were begged at 672 million bushels from 714 million last month but this was up from expectations of 636 million. Beginning stocks were adjusted lower by 20 million bushels. Feed usage was slashed by 200 million bushels and ethanol usage down by 100 million from last month.
Exports were also cut by 100 million bushels. In addition, the USDA announced a daily export sale if 114,300 tonnes of US corn to unknown destination. Weekly export inspections came in at just 16.5 million bushels which was well below trade expectations. Inspections need to average 33.7 million bushels per week to reach the USDA projection for the year. World ending stocks were adjusted higher to 117.39 million tonnes from 114.53 million last month and from 124.3 million tonnes last year. Weakness in the other grains and negative outside market forces helped to limit the advance, CME analysts said.
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