Chicago Close - Wheat Up, Beans And Corn Down

Posted by Nogger - a legend in his own mind at 21:52 | Categorized as

07/02/11 -- Soybeans

March soybeans closed down 9 cents at USD14.24 1/2; March soymeal fell USD0.80 or to USD382.40; March soyoil ended 57 points lower at 58.41. The Brazilian Oilseed Processors Association ABIOVE increased their Brazilian production forecast to 68.8 MMT, 1.3 MMT higher than the USDA. The latter will issue revised world production estimates on Wednesday. They will also report on US ending stocks, which may be trimmed further from last months estimate of 140 million bushels.

Corn

March corn fell 3 3/4c to USD6.74 3/4; May corn declined 3 1/2c to USD6.85 3/4. Fresh 30-month highs were set in the overnight session, but corn failed to hang onto those gains in the face of light profit-taking ahead of Wednesday's key USDA numbers. That report is seen dropping US corn ending stocks by around 10 million bushels from last month. Weekly export inspections were strong, but funds were estimated to have sold 5,000 contracts on the day.

Wheat

CBOT March wheat ended up 5c at USD8.58 3/4; KCBT March rose 10 3/4c to USD9.53 1/2; MGEX March gained 2 3/4c to USD9.91 1/4. Egypt bought 170,000 MT of soft wheat for March shipment over the weekend, with the business split between the US, Argentina and Australia. A variety of other tenders are in the marketplace this week too, keeping the wheat market bubbling away nicely. The USDA are expected to trim their US wheat ending stocks estimate by around 8-10 million bushels on Wednesday.