Chicago Close

11/05/11 -- Soybeans: May 11 soybeans closed at USD13.33 1/2, down 6 1/2 cents; May 11 soybean meal closed at USD344.10, down USD2.20; May 11 soybean oil closed at 56.07, down 42 points. The USDA raised US old crop ending stocks for 2010/12 by 30 million bushels to 170 million bushels. They also upped Brazilian soybean production by a million tonnes to 73 MMT. Crude oil fell USD5.00/barrel adding to downside potential. China's soybean import requirement for 2010/11 was cut to 54.5 MMT, but estimated at a healthy 58 MMT for next season.

Corn: May 11 corn closed at USD6.68 3/4, down 37 1/4 cents; Dec 11 corn closed at USD6.26, down 26 3/4 cents. Limits will be expanded to 45 cents tomorrow after futures closed limit down on the July and September contract with limit no applying to in delivery May. US 2010/11 corn ending stocks rose by 54 million bushels from last month as the USDA cut projected exports. In 2011/12 corn use from the ethanol sector is only seen climbing by a very modest 50 million bushels, placing US ending stocks for next season at 900 million bushels, almost 100 million more that the trade had anticipated.

Wheat: May 11 CBOT wheat closed at USD7.27 3/4, down 41 1/4 cents; May 11 KCBT wheat closed at USD9.05, down 27 1/2 cents; May 11 MGEX wheat closed at USD9.37, down 34 cents. There wasn't a great deal of overall change to the USDA's bottom line numbers, what they did however highlight was the switch from US/EU exports in 2011/12to those from the FSU. Both the US and EU are seen losing market share as cheaper and more ample supplies become available from Russia, Ukraine and Kazakhstan in 2011/12. Exports from there are seen 150%, 143% and 50% higher respectively next season.