Chicago Close

28/11/11 -- Soybeans: Jan 12 Soybeans closed at USD11.21, up 14 1/2 cents; Mar 12 Soybeans closed at USD11.31, up 15 1/4 cents; Dec 11 Soybean Meal closed at USD287.80, up USD5.10; Dec 11 Soybean Oil closed at 48.91, up 68 points. Funds were said to have bought 4,000 soybean contracts on the day on the back of renewed optimism over Europe supporting commodity markets in general. Crude oil was firmer and the US dollar weaker, both adding support. There's no bullish weather story coming out of South America yet where Brazil is 86% planted and Argentina 56% done, both ahead of normal.

Corn: Dec 11 Corn closed at USD5.91 3/4, up 9 1/4 cents; Mar 12 Corn closed at USD5.98 1/2, up 8 1/2 cents. Prices rebounded from recent losses on ideas that Europe may finally get it's act together on concerted action against the debt crisis there, buoyed by rumours of an IMF loan for Italy. Funds reputedly bought 9,000 contracts on the day, having dumped a much larger volume than that over the past 2/3 weeks. Weekly export inspections from the USDA of 30.596 million bushels were towards the upper end of trade expectations.

Wheat: Dec 11 CBOT Wheat closed at USD5.74 3/4, up 1/4 cent; Dec 11 KCBT Wheat closed at USD6.41 1/4, down 2 1/4 cents; Dec 11 MGEX Wheat closed at USD8.31, up 3 3/4 cents. Wheat was the weakest of the three on an improved weather outlook for the southern Plains with rain for Kansas, Oklahoma, Colorado and parts of Texas. The USDA increased the percentage of the winter crop rated good/excellent by two points to 52 percent. Managed money held a net short on Chicago wheat of around 50,000 contracts as of last Tuesday, leaving the market vulnerable to a corrective bounce at some point.