Chicago Rises As Weekend Rains In Argentina Disappoint

23/01/12 -- Soybeans: Mar 12 Soybeans closed at USD12.17 1/2, up 30 1/2 cents; May 12 Soybeans closed at USD12.25 1/2, up 30 cents; Mar12 Soybean Meal closed at USD321.00, up USD9.10; Mar 12 Soybean Oil closed at 51.42, up 99 points. This was the highest close for beans since the USDA report just over a week ago. Weekend rains in Argentina were less than hoped for, although there are chances for more between now and Wednesday. Funds were said to have bought 7,000 soybean contracts on the day, enthused by an apparent step closer to sorting out a deal with its creditors by Greece. The weaker dollar was also supportive.

Corn: Mar 12 Corn closed at USD6.20, up 8 1/2 cents; May 12 Corn closed at USD6.25 3/4, up 9 cents. Fund money was said to have bought around 11,000 contracts on the day as most of Argentina only got a half inch or so of rain over the weekend. Ideas now are that for corn what is lost is lost. Most are now using a crop figure around 20 MMT, and more than one is going in at 18-19 MMT, well below the 26 MMT that the USDA currently have. Mexico bought 152,900 MT of US corn today. Firm crude oil also helped as tensions mount over Iran's nuclear program and it's continued threat to close the Strait of Hormuz.

Wheat: Mar 12 CBOT Wheat closed at USD6.19 3/4, up 9 1/4 cents; Mar 12 KCBT Wheat finished at USD6.73 1/2, up 6 1/2 cents; Mar 12 MGEX Wheat closed at USD8.03 1/4, up 4 1/2 cents. Chicago wheat led the way, buoyed by the large spec short that already exists in it. Funds were said to have trimmed that today, but only by around 3,000 contracts. Doubts over US wheat export prospects though continue to nag. The USDA's weekly export inspections report was disappointing at 17.106 million bushels today, this time last year it was 25.027 million. Once again this is another sign of US exports in 2011/12 failing to meet the USDA's target of 25 MMT.