Chicago Closing Comments

23/09/11 -- Soybeans: Nov 11 Soybeans closed at USD12.83, down 37 1/2 cents; Jan 12 Soybeans closed at USD12.94 1/4, down 37 1/4 cents; Oct 11 Soybean Meal closed at USD330.90, down USD9.00; Oct 11 Soybean Oil closed at 53.68, down 136 points. Global economic woes continue to see money pouring out of grains, and soybeans are no exception with fund money dumping an estimated 13,000 lots on the day. The market's disappointment that all the Fed could come up with was "Operation Twist" couldn't have been more emphatic. Weekly export sales of 404,400 MT were within the range of trade estimates of of 350-550 TMT.

Corn: Dec 11 Corn closed at USD6.50, down 35 3/4 cents; Mar 12 Corn closed at USD6.63, down 35 3/4 cents. Corn slumped to close not far off the newly increased 40 cent daily limit move as funds slashed an estimated 28,000 contracts off their overbought positions. The Dow slumped more than 500 points and crude oil fell more than USD5.00/barrel as a broad-based sell-off sent the markets crashing. Weekly export sales were 598,100 MT were towards the low end of estimates of 550-800 thousand MT. China bought 122,800 MT of that total, but even that couldn't get the bulls excited today.

Wheat: Dec 11 CBOT Wheat closed at USD6.33 3/4, down 33 cents; Dec 11 KCBT Wheat closed at USD7.21, down 39 1/2 cents; Dec 11 MGEX Wheat closed at USD8.20, down 20 1/2 cents. Wheat succumbed to the same pressures affecting the rest of the market with funds selling an estimated 6,000 CBOT contracts on the day. Egypt bought Russian wheat again, at substantially lower prices than a week ago. Kazakhstan now say that their 2012 grain harvest will be more than double that of 2011 at 25 MMT. Export sales were 679,500 MT, better than the 400-550 thousand MT expected.