Chicago Close


September soybeans closed at USD10.23 1/2, down 14 1/4 cents; September soybean meal closed at USD297.20, down USD8.30; September soybean oil closed at 41.25, up 17 points. Oil gained on beans and meal after the USDA announced weekly export sales of 138,200 MT for soyoil, well above expectations of 40-50,000 MT. And that figure doesn't include 60,000 MT bought by China earlier in the week. The USDA raised 2010 soybean yields and final production, not lowered them as expected, that makes 2010/11 carryout 46 million bushels higher than anticipated at 350 million.


September corn closed at USD4.64, up 7 3/4 cents; December corn closed at USD4.78 1/4, up 7 1/2 cents. The USDA lowered their projected 2010 US corn yield a bit more than expected. US and world production was dropped around 5 MMT with world ending stocks falling by 3.64 MMT to 135.6 MMT. That's just under 60 days worth of supply, the 3rd tightest of the past 35 years. Corn also got a boost from higher crude oil and ethanol prices on ideas that the US hurricane season will be more active than normal. Weekly export sales came in lower than expected at 680,200 MT.


Sept CBOT wheat closed at USD7.04 3/4, down 2 cents; Sept KCBT wheat closed at USD7.47 1/4, down 1/4 cents; Sept MGEX wheat closed unchanged at USD7.42 3/4. Export sales came in higher than expected at 1.613 MMT, the best figure in three years. Egypt took both old (115,900 MT) and new crop (330,000 MT). The USDA report had something for both the bulls and the bears. US ending stocks were cut more than expected, and world production was also reduced. Thanks to reduced consumption though, global ending stocks were actually raised by just over 3 MMT.