Chicago Rallies

15/11/11 -- Soybeans: Jan 12 Soybeans closed at USD12.00 1/4, up 22 cents; Mar 12 Soybeans closed at USD12.10 1/4, up 21 1/2 cents; Dec 11 Soybean Meal closed at USD301.40, up USD2.20; Dec 11 Soybean Oil closed at 52.60, up 138 points. Beans managed to finish above USD12 for the first time in seven sessions on continued reports of Chinese buying. Funds bought an estimated 6,000 soybean contracts on the day. NOPA report US soyoil stocks at their lowest levels since December 2005 on strong demand from the biodiesel sector, which explains the strength displayed in beans and oil relative to meal. South American weather continues to throw up little in the way of threat to planting/crop development there.

Corn: Dec 11 Corn closed at USD6.45 1/2, up 12 cents; Mar 12 Corn closed at USD6.54 3/4, up 11 1/2 cents. Funds were said to have bought around 15,000 contracts by the end of the session. Spillover strength from beans was evident as too was support from rising crude oil. South Korea bought 70,000 MT of US corn along with 110,000 MT of optional origin. They did also however pop up as booking a couple of cargoes of what may have been Black Sea feed wheat, and trade gossip suggests that the optional origin corn may also be coming from that region, probably Ukraine.

Wheat: Dec 11 CBOT Wheat closed at USD6.32 3/4, up 17 cents; Dec 11 KCBT Wheat closed at USD7.05, up 13 cents; Dec 11 MGEX Wheat closed at USD9.31 1/4, up 3 3/4 cents. Funds were said to have bought 3,500 CBOT contracts on the day. Chicago gained on Minneapolis for once on short-covering. Strength in the other CBOT pits supported wheat even though export demand remains slack. Competition from the Black Sea and beyond will limit US export hopes as we approach 2012, but after four down sessions in a row a rally was maybe due.