Chicago Close

15/07/11 -- Soybeans: Aug 11 soybeans closed at USD13.85 3/4, up 3 3/4 cents; Nov 11 soybeans closed at USD13.87, up 3 cents; Aug 11 soybean meal closed at USD360.30, up USD3.30; Aug 11 soybean oil closed at 57.35, up 4 points. Aug beans were up 40 3/4 cents on the week. A heatwave is expected for much of the US this weekend, encouraging some risk premium being added to the market even though the crop is still a few weeks away from its critical yield development stage in August. Some forecasts are calling for mostly hot and dry for much of the Midwest for the next fortnight, although others see the chance of a break in the weather a week from now.

Corn: Sep 11 corn closed at USD7.01 1/4, up 10 1/2 cents; Dec 11 corn closed at USD6.85, up 6 1/2 cents. Dec corn was up 68 1/2 cents on the week. As with soybeans the corn market was adding some pre-weekend risk premium on fears that a prolonged heatwave would damage corn at the pollination stage, the most sensitive period for determining yields. Strong crude oil and a weaker US dollar also added some support. The dollar was under pressure on talk that Moody's and S&P might downgrade America's credit rating.

Wheat: Sep 11 CBOT wheat closed at USD6.94 3/4, down 12 1/4 cents; Sep 11 KCBT wheat closed at USD7.64 1/2, down 3/4 cent; Sep 11 MGEX wheat closed at USD8.23 3/4, down 5 1/4 cents. On the week overall Sep CBOT wheat closed up 43 1/2 cents, Sep 11 KCBT wheat closed up 37 1/4 cents and Sep 11 MGEX wheat closed up 6 3/4 cents. News that Russia had again bought wheat from Russia at far cheaper levels than other origins depressed the market today. US wheat was around USD35/tonne dearer than the winning Russian bids on an FOB basis, and in the case of Egypt there is then dearer freight to add on top.