Nogger's Blog

22/03/12 -- Soybeans: May 12 Soybeans closed at USD13.49 1/2, down 5 1/2 cents; Nov 12 Soybeans closed at USD13.11 3/4, down 6 cents; May 12 Soybean Meal closed at USD370.10, up USD0.30; May 12 Soybean Oil closed at 53.96, down 42 points. Worries about a slowdown in Chinese growth, partially due to the ongoing and possibly worsening recession in Europe, dragged beans lower today. Funds sold an estimated 5,000 soybean contracts on the day. Weekly export sales were a let down at 356,700 MT for 2011/12 and 176,100 MT for 2012/13, the trade had been anticipating sales in the region of 900,000 and one million MT.

Corn: May 12 Corn closed at USD6.44 1/2, up 2 1/2 cents; Dec 12 Corn closed at USD5.55 3/4, down 1/4 cent. Weekly export sales were 862,100 MT for 2011/12 and 55,000 MT for 2012/13, a little above estimates for sales of 650 to 850 thousand MT. Having fallen 31 cents in the past three sessions, with funds selling an estimated 36,000 contracts during this time, then maybe some modest consolidation was due. The Argentine Ag Ministry estimated their 2011/12 corn crop at 21.2 MMT - slightly higher than their previous estimate of 20.5 MMT. The US weather outlook remains favourable for timely corn plantings.

Wheat: May 12 CBOT Wheat closed at USD6.46 1/4, up 10 cents; May 12 KCBT Wheat closed at USD6.84, up 9 cents; May 12 MGEX Wheat closed at USD8.07, up 8 1/4 cents. Weekly export sales of a combined 541,300 MMT were above estimates for sales of 400-500 TMT. Ideas of a lower European wheat crop in 2012 were friendly, with the Chicago contract in particular deriving support from the size of the spec short in it. It is notable that US wheat prices have fallen since the turn of the year whereas European levels have gained. Still, there's plenty of competition around with Australia and Canada winning some high profile business in the past week or so.