CBOT Close

20/10/10 -- Soybeans

November CBOT soybeans crashed back through the USD12/bushel level, rising 32c to USD12.12; December soymeal hit a one-year high settling up USD9.60, at USD337.80; December soyoil rose 137 points to 48.47. China were back in the market for soybeans again today, buying 180,000 MT for 2010/11 as reported the USDA. "A strong La Nina is under way creating dry conditions in the US heartland. Soybeans have already been damaged by La Nina drought in the Eastern Midwest. Indiana soybeans ripening prematurely under heat and moisture stress, suggesting the state yield will trail lower on the November USDA report," say Martell Crop Projections.


CBOT December corn ended 27 1/2c higher at USD5.73 1/2 a bushel; CBOT March corn was also up 27 1/2c to USD5.85 1/2 a bushel. Corn futures gained back everything they lost yesterday, plus then some, with a recovery in the outside markets leading the way. It was in a steady climb all day that triggered near limit gains at the close. Crude oil was up nearly USD2.50 by the close as bullish mania came to the forefront once again. Strong rumours of Asian interest in US corn swept the market. The five day forecast has light rain moving into most of the country with heavier amounts of up to an inch in some states.


CBOT December wheat ended up 11 1/2c at USD6.83 a bushel; KCBT December wheat rose 14 1/2c to USD7.30, and MGEX December wheat climbed 14 1/4c to USD7.43 3/4. Wheat was a follower of corn and beans once again. All the commodities seemed to benefit from the lower dollar. The southern Plains are expected to see some much needed rain for the sown wheat with the new five day forecast showing fair rain amounts for the SRW belt also. Egypt buying some US wheat in yesterday's tender was supportive, whilst wheat prospects in Western Australia continue to deteriorate.