Chicago Closing Comments

Posted by Nogger - a legend in his own mind at 22:01 | Categorized as

18/01/11 -- Soybeans

CBOT March soybeans settled 9 1/4 cents lower at USD14.13 1/4; Nov soybeans ended 2 3/4 cents higher at USD13.26; March soymeal closed USD4.70 lower at USD383.40; March soyoil ended 28 points higher at 57.55. Beans were under pressure on news of China cancelling a couple of cargoes of US beans due to negative margins. Improved rains in many parts of Argentina added to the negative tone. AgRural upped their Brazilian soybean estimate to a record 69.7 MMT yesterday.

Corn

March corn finished up 10 3/4c at USD6.59 1/2; May corn finished up 11 1/4c at USD6.60 1/4. Corn hit a fresh 30 month high on spillover support from wheat. Argentina got some rain over the weekend, but the corn crop is far from out of the woods yet. The USDA's projections last week for the second tightest global stocks/use ratio in the last 35 years, equivalent to around 55 days of supply is keeping the market nervous. China may be about to attempt to rebuild it's state stockpiles after heavy government selling in recent months in an attempt to hold down prices.

Wheat

CBOT March wheat closed up 20c at USD7.93 1/4; KCBT March wheat rose 16 1/2c to USD8.76 1/2; MGEX March wheat gained 15 3/4c to USD9.06. Panic in North Africa was largely behind wheat's gains today. Algeria has bought almost a million tonnes in the past month as it tries to stave off political overthrow, a fate that neighbouring Tunisia has already succumbed to. Turkey bought 145,000 MT of US wheat today. Libya and Jordan have also bought in recent days or are at least in the market.