Chicago Close

27/07/11 -- Soybeans: Aug 11 Soybeans closed at USD13.75 3/4, down 7 1/4 cents; Nov 11 Soybeans closed at USD13.80 1/2, down 8 1/4 cents; Aug 11 Soybean Meal closed at USD355.80, down USD4.70; Aug 11 Soybean Oil closed at 56.40, down 19 pips. Beans were the weakest leg of the trio, with corn and wheat posting modest gains. Reports of China buying Argie soybeans which are now attractively priced relative to those from the US may have weighed on the market today. US debt concerns are keeping players nervous ahead of next Tuesday's deadline. Weather is seen less threatening this week. Funds were estimated to have sold 6,000 soybean lots on the day. Estimates for tomorrow's weekly export sales range from 550 to 850 thousand MT.

Corn: Sep 11 Corn closed at USD6.91 1/2, up 1 3/4 cents; Dec 11 Corn closed at USD6.91 1/2, up 4 3/4 cents. The market is factoring in lower production estimates than the USDA came up with earlier in the month, with yields now estimated to be around the 155-156 bu/acre area, as opposed to the 158.7 figure from our friends in Washington. Some damage has already been done in the market's view. We've got another two weeks to go yet until the USDA's next assessment of yields, but based on declines in good/excellent ratings recently then some sort of reduction seems likely. Funds were said to be net buyers of 7,000 contracts on the day. Estimates for tomorrows weekly export sales report are from 550 to 950 thousand MT.

Wheat: Sep 11 CBOT Wheat closed at USD7.04 3/4, up 10 3/4 cents; Sep 11 KCBT Wheat closed at USD7.88 1/4, up 7 3/4 cents; Sep 11 MGEX Wheat closed at USD8.51, up 12 cents. A spring wheat crop tour doing the rounds is reporting almost universally lower yields due to late planting and saturated field conditions earlier in the year. A recent sale of Black Sea wheat into Thailand, a fairly unusual destination, usurped offers from both the US and Australia highlighting the competitiveness of grain from that region. Estimates for tomorrows weekly export sales report range from 300 to 500 thousand MT.