Chicago Markets Decline

31/10/11 -- Soybeans: Nov 11 Soybeans closed at USD12.07 1/2, down 9 1/2 cents; Jan 12 Soybeans closed at USD12.17 1/4, down 8 3/4 cents; Dec 11 Soybean Meal closed at USD316.10, down USD1.40; Dec 11 Soybean Oil closed at 51.17, down 60 points. The market was under pressure for most of the day on a series of bearish outside influences including the Bank of Japan aggressively buying US dollars. Reports of major US clearing firm MF Global filing for bankruptcy, saddled down by it's exposure to European debt, was also maybe a sign of things to come. Export inspections came in at 48.5 million bushels, better than expected but year-to-date inspections are still running behind last year’s pace. After the close the USDA reported harvest progress at 87% complete, up 8% from the five year average.

Corn: Dec 11 Corn closed at USD6.47, down 8 cents; Mar 12 Corn closed at USD6.59, down 8 cents. Corn was lower but well off session lows. The USDA export inspections report came in at 27.7 million bushels, towards the low end of expectations and year-to-date inspections here are also running behind last year’s pace. Funds sold an estimated 9,000 contracts on the day, weighed down by a combination of European debt worries, falling crude oil, a firmer dollar and the MF Global news. After the close the USDA pegged harvest progress at 78%, well ahead of the 62% normally at this time of year.

Wheat: Dec 11 CBOT Wheat closed at USD6.28 1/4, down 16 1/4 cents; Dec 11 KCBT Wheat closed at USD7.25, down 13 cents; Dec 11 MGEX Wheat closed at USD9.08 3/4, down 11 3/4 cents. Egypt bought Ukraine wheat over the weekend, which undercut even Russian offers. No US wheat was even put up in this latest tender, not for the first time recently. The USDA export inspections report today was 20.82 million bushels, in line with what was expected. The USDA crop progress report showed winter wheat planted at 89%, in line with normal. Crop conditions were 46% good/excellent, also in line with normal.