Chicago Close

18/11/10 -- Soybeans

Jan 11 soybeans closed at USD12.42, up 37 cents; Dec 10 soybean meal closed at USD335.00, up USD7.00; Dec 10 soybean oil closed at 50.92, up 198 points. Weekly export sales were robust with old crop sales of 1,007,500 MT and new crop sales of 168,000 MT. China took around 75% of the old crop and most of the new crop too. That helped to bolster opinion that any tightening of Chinese fiscal policy will do little to harm demand for grains and oilseeds. The weaker U.S. dollar and stronger crude oil prices helped to boost prices.


Dec 10 corn closed at USD5.41 3/4, up 16 cents; Mar 11 corn closed at USD5.55 3/4, up 16 1/2 cents. Bargain hunting can probably best describe today's action after corn had posted some significant losses in the past week. Export sales were in line with trade ideas at 533,700 MT, but would seem to indicate that rationing is indeed taking place above the USD5/bushel level. Australia are likely to have plenty of feed grade wheat to sell once their harvest is done, and that will likely replace corn going into some Asian homes.


Dec 10 CBOT wheat closed at USD6.45 1/4, up 12 3/4 cents; Dec 10 KCBT wheat closed at USD7.10 1/4, up 14 3/4 cents; Dec 10 MGEX wheat closed at USD7.24, up 13 1/2 cents. It was a clean sweep for US wheat in Egypt's latest tender, who bought two cargoes of SWW at USD268.50/tonne and one cargo of HRW at USD284.75/tonne. In addition weekly export sales were above expectations at 943,444 MT for 2010/11 delivery and 43,500 MT for 2011/12 delivery. Dry conditions continue to plague western regions of the HRW belt.