Nogger's Blog

07/03/11 -- Soybeans: Mar 11 soybeans closed at USD13.87 3/4, down 20 cents; Mar 11 soybean Meal closed at USD358.10, down USD5.70; Mar 11 soybean oil closed at 58.57, down 39 points. Rising crude oil prices, and the implications for global economic growth are taking money out of grains. An improved outlook for soybean production prospects in South America, reports that the strike in the major Argentine port of Rosario may be over and poor export inspections at only 26.379 million bushels from over 49 million last week added to the negative tone.

Corn: Mar 11 corn closed at USD7.10 3/4, down 10 1/2 cents; Dec 11 corn closed at USD6.10 1/2, up 1 cent. Higher crude oil dented corn's hopes today, as too did a report from the University of Missouri Food and Agricultural Policy Research Institute (FAPRI) forecasting a sharp slide in ethanol production, and a resultant large increase in ending 2011/12 stocks. The report was based on the assumption that tax credits on bioethanol production will not be extended at the end of the current calendar year.

Wheat: Mar 11 CBOT wheat closed at USD7.69 1/2, down 31 1/2 cents; Mar 11 KCBT wheat ended at USD8.88, down 30 cents; Mar 11 MGEX wheat finished at USD9.40 1/2, down 12 1/2 cents. Iraq bought mostly US wheat over the weekend, but a widespread sell-off in grains in general contributed to wheat's demise. An improved weather outlook for the Plains also dragged wheat lower. FAPRI forecast US harvested acres at 2.1 million more than the USDA currently predict, with a corresponding increase in production.