Chicago Closing Comments

02/11/11 -- Soybeans: Nov 11 Soybeans closed at USD11.93 1/2, up 1 1/4 cents; Jan 12 Soybeans closed at USD12.02 3/4, up 1/4 cent; Dec 11 Soybean Meal closed at USD310.50, down USD0.20; Dec 11 Soybean Oil closed at 50.85, up 5 points. Beans closed up but well off session highs with funds buying an estimated 2,000 contracts on the day. Informa Economics left it's US soybean yield and production estimates broadly unchanged from last month and marginally above the USDA's October numbers. Brazil's soybean production estimate was raised 2 MMT however. Weekly export sales for tomorrow range from 450 to 750 thousand MT.

Corn: Dec 11 Corn closed at USD6.45, down 9 1/4 cents; Mar 12 Corn closed at USD6.56, down 9 1/4 cents. Corn started higher but soon faded as funds sold an estimated 7,000 contracts on the day after Informa Economics raised it's US production estimate to 12,549 billion bushels, up from the October estimate of 12.519 billion and above last month's USDA figure of 12.433 billion. The European story also continues to weigh on the market as did news that the Fed wasn't up for launching QE3 just yet. Estimates for the weekly export sales report range from 400 to 600 thousand MT, not too impressive for this time of year. US sales are missing out to cheaper supplies from Ukraine and also better priced feed wheat out of Australia.

Wheat: Dec 11 CBOT Wheat closed at USD6.23 1/2, down 6 1/2 cents; Dec 11 KCBT Wheat closed at USD7.13, down 5 1/2 cents; Dec 11 MGEX Wheat closed at USD9.10 1/4, up 4 1/2 cents. CBOT wheat was again a follower of corn, and today that meant going lower on the back of Informa's raise in production estimates for corn. Rain and snow for the Southern Plains could be a little negative too although the lack of US competitiveness abroad should be of more concern. Trade estimates for tomorrow's weekly export sales report range from 350 to 450 thousand MT. With world ending stocks projected at a ten year high, a strong dollar and an abundance of much cheaper Black Sea wheat on the market US wheat has it's work cut out in 2011/12.