Chicago Close

12/01/11 -- Soybeans

Jan 11 soybeans closed at USD14.09, up 58 1/2 cents; Jan 11 soybean meal closed at USD377.40, up USD18.20; Jan 11 soybean oil closed at 57.43, up 126 points. Beans touched limit up early doors, fell back and then rallied to close near limit higher later in the session. The USDA report was bullish with 2010 US soybean yields and production cut, contrary to expectations for a small rise. Ending stocks for 2010/11 fell 25 million bushels from last month to 140 million - equivalent to only 15 days of supply - the tightest of the past 40 years.


Mar 11 corn closed at USD6.31, up 24 cents; May 11 corn closed at USD6.39 3/4, up 24 1/2 cents. Corn also touched limit up early doors but retreated slightly later in the session, ending with strong gains nevertheless. Pretty much all the USDA report numbers came in below the average trade guesses this morning, with 2010 yields 0.2 bu/acre below the lowest trade estimate. Global ending stocks were reduced to 127 MMT, the second tightest stocks/use ratio in the last 35 years, equivalent to around 55 days of supply.


Mar 11 CBOT wheat closed at USD7.70 1/2, up 11 cents; Mar 11 KCBT wheat closed at $USD.52, up 14 cents; Mar 11 MGEX wheat closed at USD8.77 1/2, up 12 1/4 cents. The USDA numbers were less bullish for wheat than corn or beans, with global ending stocks pegged 1.3 MMT higher than last month at 178 MMT. Even so US wheat exports for 2010/11 are now seen at their highest level since 1993/93. Winter wheat plantings were broadly in line with trade estimates at 41 million acres.