Chicago Close - Monday

27/12/10 -- Soybeans

Jan 11 soybeans closed at USD13.73, up 23 1/2 cents; Jan 11 soybean meal closed at USD366.40, up USD6.40; Jan 11 soybean oil closed at 57.15, up 56 points. China raised their interest rates over the weekend, which may curb imports, but that news was eclipsed by dryness in Argentina. By the close of play soybeans were at their highest in more than two years, with funds buying an estimated 4,000 to 5,000 contracts. Export inspections were poor at 23.331 million bushels, but that information was largely ignored by a market seemingly determined to press higher.


Mar 11 corn closed at USD6.15 1/4, up 1 1/4 cents; May 11 corn closed at USD6.23, up 1 cent. Corn was supported by spillover strength from beans, advancing to its highest levels since July 2008. Export inspections of 32.561 million bushels were in line with trade estimates. Dryness in Argentina is probably more of an issue for corn right now than it is for soybeans, with around half the crop in the middle-ending of the critical pollinating period. The forecast for the next ten days is hot and dry, with temperatures set to hit the top 90's to low 100's.


Mar 11 CBOT wheat closed at USD7.80 1/4, down 2 3/4 cents; Mar 11 KCBT wheat closed at USD8.43 3/4, down 1 1/4 cents; Mar 11 MGEX wheat closed at USD8.66 1/4, down 2 cents. For wheat it was a quiet low volume day. Export inspections of 17.499 million bushels were in line with expectations, that brings the total year-to-date inspections total to 636,429 million, well ahead of 481,909 million this time last year. Egypt announced another weekly tender after the close with the results expected tomorrow, it remains to be seen if the recent strength of the dollar allows US wheat to feature.