Chicago Beans Close Higher, But Corn And Wheat Lower

06/10/16 -- Soycomplex: Beans closed higher, helped by strong weekly export sales of 2,179,600 MT for 2016/17 being reported mainly for China (1,487,000 MT) and unknown destinations (318,400 MT). Trade forecasts had been for sales of 1.2-1.5 MMT. Sales to date are now running 130% ahead of last year’s pace. Exports of 1,026,900 MT were reported this week, again mainly for China (779,600 MT). The USDA also reported the sale of 258,000 MT of soybeans for delivery to unknown destinations during the 2016/17 marketing year under the daily reporting system. Conab estimated Brazil's soybean crop at around 102-104 MMT (USDA 101 MMT). The market continues to weight this huge demand against record yields and the looming huge US crop. The remnants of Hurricane Matthew may cause some disruption to soybean harvesting in the coming days. Nov 16 Soybeans settled at $9.58 1/2, up 1 3/4 cents; Jan 17 Soybeans settled at $9.64 3/4, up 1 1/4 cents; Oct 16 Soybean Meal settled at $301.50, down $2.30; Oct 16 Soybean Oil settled at 33.10, up 44 points.

Corn: Corn closed lower despite weekly export sales of just over 2 MMT. This was the largest weekly sales since January of last year, according to Benson Quinn. However, this was already largely anticipated as it included the massive sale to Mexico that was announced last week. Exports of 1,390,200 MT were also reported. Conab estimated Brazil's 2016/17 corn crop at 84 MMT versus 82.5 MMT from the USDA. There's a long way to go yet before that crop is harvested, and Brazil must get over their own 2015/16 corn shortage first. Brazil’s biotech commission have apparently cleared the way for GMO corn shipments from the US. This should provide a window of opportunity for US exporters. Crude oil put in its first close above $50/barrel since June. Back then it didn't stay there very long however. The EU approved 133,000 MT worth of corn import licences, taking the cumulative volume this season to 2.1 MMT. Dec 16 Corn settled at $3.40 1/2, down 7 1/4 cents; Mar 17 Corn settled at $3.50 1/4, down 7 1/4 cents.

Wheat: Wheat closed mostly lower, reversing yesterday's gains. Poor weekly export sales of only 377,000 MT for delivery in marketing year 2016/17 didn't help. These were down 34 percent from the previous week and 31 percent from the prior 4-week average. Exports of 700,700 MT were however pretty good. The USDA also reported the sale of 115,000 MT of hard red winter wheat for delivery to Morocco during the 2016/17 marketing year under the daily reporting system. The EU granted export licences for 423,000 MT of soft wheat this week, taking the total since the season began to 6.8 MMT versus only 5.8 MMT this time a year ago. Russia said that they will harvest 72 MMT of wheat in clean weight this year. Australia’s western wheat belt’s rain chances have seemed to have evaporated in the latest run of the 10 day outlook, said FCStone. Drier weather will however be welcomed in eastern states. Dec 16 CBOT Wheat settled at $3.95 3/4, down 9 1/4 cents; Dec 16 KCBT Wheat settled at $4.05, down 10 cents; Dec 16 MGEX Wheat settled at $5.24 3/4, up 1/4 cent.