Chicago Close
19/11/10 -- Soybeans
Jan 11 soybeans closed at USD12.01 1/2, down 40 1/2 cents; Dec 10 soybean meal closed at USD325.80, down USD9.20; Dec 10 soybean oil closed at 48.96, down 196 points. News of China raising bank reserve requirements for the second time in a fortnight spooked the market. It is also the fifth increase this year, and comes at a time when 75% of all US soybean sales are heading to China as almost a matter of weekly routine. The move apparently takes more than USD50 billion of liquidity out of the Chinese market.
Corn
Dec 10 corn closed at USD5.20 3/4, down 21 cents; Mar 11 Corn closed at USD5.34 3/4, down 21 cents. The Chinese news was seen as bearish for corn, as too was news of the US Environment Agency delaying a decision on increased ethanol usage, to the so-called E15 blend, for cars built between 2001-2006 until the new year. Funds were estimated to have sold in excess of 10,000 contracts on the day taking sales for the week to around 30-40,000 contracts.
Wheat
Dec 10 CBOT wheat closed at USD6.44 1/2, down 3/4 cent; Dec 10 KCBT wheat closed at USD7.09 1/2, down 3/4 cent; Dec 10 MGEX wheat closed at USD7.25 3/4, up 1 3/4 cents. Wheat managed to shrug off the Chinese news as relatively inconsequential for it. Thursday's weekly export sales were strong at almost 1 MMT, and the news that Egypt bought three cargoes of US wheat and nothing from elsewhere also highlights the competitiveness of US wheat at current levels.
Jan 11 soybeans closed at USD12.01 1/2, down 40 1/2 cents; Dec 10 soybean meal closed at USD325.80, down USD9.20; Dec 10 soybean oil closed at 48.96, down 196 points. News of China raising bank reserve requirements for the second time in a fortnight spooked the market. It is also the fifth increase this year, and comes at a time when 75% of all US soybean sales are heading to China as almost a matter of weekly routine. The move apparently takes more than USD50 billion of liquidity out of the Chinese market.
Corn
Dec 10 corn closed at USD5.20 3/4, down 21 cents; Mar 11 Corn closed at USD5.34 3/4, down 21 cents. The Chinese news was seen as bearish for corn, as too was news of the US Environment Agency delaying a decision on increased ethanol usage, to the so-called E15 blend, for cars built between 2001-2006 until the new year. Funds were estimated to have sold in excess of 10,000 contracts on the day taking sales for the week to around 30-40,000 contracts.
Wheat
Dec 10 CBOT wheat closed at USD6.44 1/2, down 3/4 cent; Dec 10 KCBT wheat closed at USD7.09 1/2, down 3/4 cent; Dec 10 MGEX wheat closed at USD7.25 3/4, up 1 3/4 cents. Wheat managed to shrug off the Chinese news as relatively inconsequential for it. Thursday's weekly export sales were strong at almost 1 MMT, and the news that Egypt bought three cargoes of US wheat and nothing from elsewhere also highlights the competitiveness of US wheat at current levels.