Chicago Soybeans Rebound From Early Losses

20/10/11 -- Soybeans: Nov 11 Soybeans closed unchanged at USD12.25; Jan 12 Soybeans closed at USD12.30 1/2, down 3/4 cent; Dec 11 Soybean Meal closed at USD320.30, up USD1.00; Dec 11 Soybean Oil closed at 51.39, down 9 points. The market rallied from double digit losses in beans early on to end around unchanged at the finish despite funds selling an estimated 4,000 soybean contracts on the day. Soybean weekly export sales were 594,700 MT, well below the 850 thousand MT to 1 MMT anticipated although export shipments of 1,168,900 MT were robust. Spillover strength from corn and wheat helped drag the soy complex up off the lows. European debt concerns remain ahead of this weekend's key meeting.

Corn: Dec 11 Corn closed at USD6.49 1/2, up 11 cents; Mar 12 Corn closed at USD6.59 1/4, up 10 3/4 cents. The USDA report weekly export sales of 1.85 MMT for corn, which despite being large was actually lower than the 2.0-2.5 MMT expected with China being confirmed as taking 900,100 MT. In addition there were also sales of 292,100 MT to "unknown" destinations. Sales are running well ahead of last year but actual shipments are more than 25% down on year ago levels. Another big harvest weekend looms, with the weather forecast playing it's part. European debt will be back on the agenda Monday.

Wheat: Dec 11 CBOT Wheat closed at USD6.30 3/4, up 11 1/4 cents; Dec 11 KCBT Wheat closed at USD7.25, up 19 1/2 cents; Dec 11 MGEX Wheat closed at USD9.17 1/2, up 6 cents. Wheat export sales were also below trade ideas of 450 to 600 thousand MT at 399,400 MT. EU wheat sales are also lagging as the Black Sea picks up most of the business around, a situation which is unlikely to change any time soon now that Ukraine have lifted their export duties. Market direction next week will be decided by the noises coming out of Europe on Monday.