Chicago Sharply Lower As Funds Exit

Posted by Nogger - a legend in his own mind at 08:19 | Categorized as

29/03/12 -- Soybeans: May 12 Soybeans closed at USD13.55 1/2, down 12 cents; Nov 12 Soybeans closed at USD13.04 3/4, down 15 3/4 cents; May 12 Soybean Meal closed at USD375.00, down USD2.70; May 12 Soybean Oil closed at 53.59, down 101 points. Funds were said to have been net sellers of 8,000 soybean contracts on the day on profit-taking ahead of tomorrow's USDA report. Weekly soybean export sales of 471,900 MT for old crop and 120,400 MT for new crop were within the range of trade estimates for a combined 450-750 TMT. In tomorrow's USDA data the trade is expecting 2010 US soybean plantings at around 75.3-75.5 million acres, and a March 1st stocks number of 1.387 billion bushels.

Corn: May 12 Corn closed at USD6.04, down 16 1/4 cents; Dec 12 Corn closed at USD5.24 1/4, down 12 cents. Funds were said to have liquidated around 17,000 contracts on the day, which would have them exiting some 50-60,000 lots on the week going on floor estimates. As well as risk off ahead of tomorrow's USDA report, the weekly export sales numbers were very disappointing. Old crop sales of 130,700 MT were a marketing-year low and new crop sales were only 27,000 MT. That's way below the anticipated combined total of 600-900 TMT. Even the sale of 120,000 MT of corn for 2011/12 delivery to China and 120,000 MT to "unknown" for new crop couldn't save corn today. Tomorrow the trade is expecting spring corn plantings of 94.7 million acres, with March 1st stocks at around 6.2 billion bushels.

Wheat: May 12 CBOT Wheat closed at USD6.12 1/2, down 18 1/4 cents; May 12 KCBT Wheat closed at USD6.54, down 16 cents; May 12 MGEX Wheat closed at USD7.88 3/4, down 9 cents. Wheat is following corn, and for now that means lower. Weekly export sales for wheat of a combined 403,100 MT were below expectations of 450-750 TMT. Tomorrow the trade is expecting all wheat plantings at 57.4 million bushels and March 1st stocks of 1.22 billion bushels. Beneficial rains in the Southern Plains having improved HRW wheat conditions substantially in recent weeks. Funds were said to have been net sellers of 4,000 Chicago wheat contracts on the day, and seem quite relaxed about carrying a significant short position into tomorrow's report.