Chicago Falls But Regains Some Lost Ground

16/02/11 -- Soybeans: Beans rebounded somewhat from early losses closing 2-4c lower, with meal down USD2-3 and oil 7-10 points higher. Even so this was the fifth successive lower close for beans with funds selling an estimated 2,000 contracts on the day. Exports are seen slowing as the (potentially record) Brazilian harvest picks up. Weekly export sales will be out tomorrow with trade estimates predicting sales of 400-700,000 MT.

Corn: Corn managed to close unchanged after trading lower for much of the session. Crude oil moved modestly higher. Argentina's corn crop is likely to be 19.5 MMT compared with 22 MMT last season, according to one trade source. That's better than some earlier estimates of 14-15 MMT before recent rains arrived. Mexico's winter corn crop may not have been as badly damaged by frost as some previous talk indicated. Weekly export sales for tomorrow are likely to be in the range of 800 TMT - 1.1 MMT, according to trade estimates.

Wheat: CBOT wheat was 2-4c lower, with KCBT wheat down 12-14c and MGEX wheat declining by 15-20c. Egypt bought three cargoes of wheat in today's tender, two of which came from the US. La Nina is finally waning rapidly which generally seems t be improving global crop weather. China is turning wetter in drought-stricken areas to the north. Russia look like emerging from winter with decent moisture levels. Australian and Argentine wheat crop estimates are increasing.