Chicago Soybeans Regain Upward Momentum

12/04/12 -- Soybeans: May 12 Soybeans closed at USD14.41, up 19 cents; Nov 12 Soybeans closed at USD13.72 3/4, up 13 3/4 cents; May 12 Soybean Meal closed at USD394.60, up USD7.80; May 12 Soybean Oil closed at 57.23, up 78 points. After three days of light consolidation beans were back on the up today. Weekly export sales were disappointing at 460,100 MT of old crop and 176,300 MT of new crop. However the reported sale of 115,000 MT to China and a further 189,000 MT to unknown under the daily reporting system was supportive. So too was the news that the Buenos Aires Grain Exchange cut its forecast for Argentine soybean production from 45 MMT to 44 MMT, trade gossip now suggests that other local estimates are now as low as 41-42 MMT.

Corn: May 12 Corn closed at USD6.37 1/2, up 1 1/2 cents; Dec 12 Corn closed at USD5.46 3/4, unchanged. Weekly export sales beat expectations falling just short of 1 MMT, heavily stacked in favour of already tight old crop. Unknown took 291,100 MT of that and China was confirmed as having bought one 60,000 MT cargo. WxRisk are forecasting a welcome major rain event for almost all of the Midwest with 75% coverage of 1-3 inches. That may slow corn planting up a little but will be beneficial for new crop overall. Strategie Grains raised their EU-27 corn production estimate by 0.9 MMT from last month to 65.4 MMT.

Wheat: May 12 CBOT Wheat closed at USD6.39 1/4, up 11 1/4 cents; May 12 KCBT Wheat closed at USD6.53, up 9 cents; May 12 MGEX Wheat closed at USD8.36 1/2, down 1 3/4 cents. Wheat export sales of 452,100 MT old crop and 90,400 MT new crop were in line with expectations for combined sales of 400-600 TMT. Strategie Grains cut their EU-27 2012/13 soft wheat crop production forecast by 4.3 MMT to 126.8 MMT citing frost and drought damage. FranceAgriMer cut their 2011/12 French ending stocks estimate from 2.4 MMT to just under 2.1 MMT. US winter wheat crop conditions are well ahead of year ago levels, as are maturity and spring wheat plantings. Weather conditions look largely favourable for now.