Nogger's Blog

06/05/11 -- Soybeans: May 11 soybeans closed at USD13.25 1/4, up 5 1/4 cents; Nov 11 soybeans closed at USD13.08 1/2, up 1 3/4 cents; May 11 soybean meal closed at USD344.90, up USD2.20; May 11 soybean oil closed at 55.37, one point higher. It was an extremely volatile day with crude oil initially extending yesterday's losses, down USD4.00-5.00/barrel in early trade, before recovering to USD2.00/barrel higher and then retreating again to end around USD2.00/barrel lower. Informa cut it's US soybean planting estimate to 76 million acres. Statistics Canada also chipped in with a lower than expected canola stocks figure of 4.85 MMT, compared with trade estimates of 5-5.2 MMT.

Corn: May 11 corn closed at USD6.82 3/4, down 22 1/4 cents; Dec 11 corn closed at USD6.40 1/4, down 15 1/2 cents. Fund liquidation drove corn lower, although it earlier flirted with higher levels on what initially appeared to be bottom picking. Funds were said to have sold an estimated 15,000 contracts on the day, similar to yesterday's volume. On the week May corn lost 71 1/4 cents and new crop Dec 29 1/4 cents. An improved weather outlook should have helped corn plantings make great strides this week, although there is no way things will be in line with the five year average, let alone last year's pace.

Wheat: May 11 CBOT wheat closed at USD7.24 1/2, up 2 cents; May 11 KCBT wheat closed at USD8.68, up 20 cents; May 11 MGEX wheat closed at USD9.10 3/4, up 4 1/2 cents. CBOT wheat was 44 3/4 cents lower on the week, KCBT wheat was 25 lower, and MGEX was 34 1/2 lower for the week. Informa pegged the 2011/12 US winter wheat crop at 39.2 MMT, down four percent from their March forecast. The Kansas wheat tour project a yield of 37.4 bushels per acre, down eight percent from last year’s estimated 40.7 bushels per acre. They also peg Kansas production at 7.0 MMT, down from 9.1 MMT last year and the lowest projected crop since 1996.