Chicago Beans Hit One Year Low

21/11/11 -- Soybeans: Jan 12 Soybeans closed at USD11.48, down 20 1/4 cents; Mar 12 Soybeans closed at USD11.58, down 20 1/4 cents; Dec 11 Soybean Meal closed at USD289.60, down USD8.80; Dec 11 Soybean Oil closed at 49.89, down 99 points. A weight of bad news encouraged further selling driving prices down to levels not seen since this time last year. As well as the old chestnut of EU debt concerns we now have worries over the US debt ceiling resurfacing. The fallout surrounding the MF Global bankruptcy is ongoing, with some investors finding that their funds are still tied-up. Weekly export inspections of 40.8 million bushels were disappointing although more than enough to meet the USDA's current sales target for 2011/12.

Corn: Dec 11 Corn closed at USD5.97 3/4, down 12 1/2 cents; Mar 12 Corn closed at USD6.05, down 13 cents. Dec corn closed below the physiologically important USD6/bushel level for the first time in seven weeks. Funds were said to have sold 11,000 contracts on the day meaning that they are thought to have liquidated 75,000 lots, or around 9.5 MMT, in less than a fortnight. Export inspections of 45.3 million bushels were better than expected and on a cumulative basis ahead of last year. Crude oil was lower and the dollar firmer, both bearish for corn. The USDA peg this season's corn harvest at 96% complete, 8% ahead of normal.

Wheat: Dec 11 CBOT Wheat closed at USD5.91 1/2, down 6 3/4 cents; Dec 11 KCBT Wheat closed at USD6.67, down 1 1/2 cents; Dec 11 MGEX Wheat closed at USD8.96 1/2, down 20 3/4 cents. Weekly export inspections of 11.6 million bushels were below what is needed to meet the current USDA projections for the 2011/12 marketing year. Egypt bought Black Sea wheat again over the weekend with US origin too expensive to even be put up for offer. The firm dollar continues to hamper US exports. After the close the USDA pegged winter wheat crop conditions in the US up three points to 50% good/excellent.