Chicago Soy And Wheat Post Yearly Declines, But Corn Rises Slightly

30/12/11 -- Soybeans: Jan 12 Soybeans closed at USD11.98 1/2, up 11 cents; Mar 12 Soybeans closed at USD12.07 3/4, up 10 3/4 cents; Jan 12 Soybean Meal closed at USD309.40, up USD2.80; Jan 12 Soybean Oil closed at 52.09, up 95 points. For the week beans were up 35 1/2 cents, meal up USD12.40 and oil up 113 points. On the year overall beans were down almost USD2.00/bushel, or 14%. Meal declined by more than sixty dollars, or 16%, and oil fell 565 points or nearly 10%. The USDA reported weekly export sales of 662,700 MT for 2011/12 and a token amount for 2012/13 - better than the 300 to 600 thousand MT that the trade was expecting. South American weather remains in the spotlight. Whilst scattered heavy rainfall is predicted in South Brazil in the coming week, there's not much moisture at all in store for Argentina, according to Martell Crop Projections.

Corn: Mar 12 Corn closed at USD6.46 1/2, up 8 1/2 cents; May 12 Corn closed at USD6.54 3/4, up 8 1/2 cents. Corn put on 27 cents for the week and actually ended the year 17 1/2 cents firmer, or almost 3% higher, than it began it. Weekly export sales were a slight disappointment at 318,800 MT for 2011/12 and 26,400 for 2012/13 compared to expectations of 400 to 600 thousand MT. Parana, Brazil's number one corn producing state, may get an inch of rainfall in the coming week although this is around half an inch lower than it would normally expect at this time of year, say Martell Crop Projections. Domestic demand for corn in the US remains strong ahead of the removal of the ethanol blenders' tax credit. Ethanol production last week reached a record 962,000 barrels/day, up 19,000 from the previous week.

Wheat: Mar 12 CBOT Wheat closed at USD6.52 3/4, up 7 1/2 cents; Mar 12 KCBT Wheat closed at USD7.17, up 19 cents; Mar 12 MGEX Wheat closed at USD8.49 1/2, down 5 3/4 cents. Chicago wheat was up 30 3/4 cents on the week but down 141 1/2 cents on the year. The USDA pegged weekly export sales at 431,200 MT - better than the 200 to 350 thousand MT expected. Weekly shipments of 413,700 MT fell slightly short of the 427,400 MT/week needed to reach the USDA's 2011/12 export target. Chicago wheat continues to derive benefit from short-covering. The latest data from the CFTC shows money mangers reducing their net short position by almost a third in the past week ended Tuesday. Spillover support from corn and soybeans on the back of South American dryness are also boosting wheat prices.

Right, pass me a beer...