Chicago Closing Comments

11/02/11 -- Soybeans: March soybeans finished down 17c at USD14.16 a bushel; March soymeal closed USD4.40 lower at USD378.10; March soyoil fell 55 points to 58.49. The market had a hangover from yesterday's news of China cancelling/switching out of existing old crop US purchases into South America as it's harvest comes on stream. Talk is gathering of a record crop in Brazil this year. A firm dollar and weak crude oil, which fell below USD85.50/barrel, also weighed on the market today.

Corn: March corn ended up 8c to USD7.06 1/2; May corn ended up 7 3/4c to USD7.17 1/4. News of Egypt's premier finally capitulating spurred corn to close above USD7/bu for only the 19th time in history. Egypt has purchased 1.5 MMT of corn so far this year from the US compared to 812,000 MT this time last year. South Korea bought 55,000 MT of US corn today and Mexico have booked 210,000 MT of the same. Mexico's own domestic corn drop has been badly damaged by recent frosts.

Wheat: March CBOT wheat closed up 4 1/4 cents at USD8.67/bushel; March KCBT wheat closed up 5 cents to USD9.73; March MGEX wheat settled up 3 cents to USD10.17 3/4. Egypt bought 170,000 MT of soft wheat split three ways between the US, Canada and Australia. Tunisia is tendering for 50,000 MT of soft milling wheat. After a sharp cold blast strong warming in the US is predicted for next week, with massive snowmelt expected in the Midwest, say Martell Crop Projections.