Chicago Close - Friday

Posted by Nogger - a legend in his own mind at 14:30 | Categorized as

02/12/11 -- Soybeans: Jan 12 Soybeans closed at USD11.35 3/4, up 7 3/4 cents; Mar 12 Soybeans closed at USD11.46 1/4, up 7 3/4 cents; Dec 11 Soybean Meal closed at USD286.40, down USD0.80; Dec 11 Soybean Oil closed at 50.05, up 53 points. Beans ended the week 29 1/4 cents firmer, with meal up USD3.70 and oil rising 182 points. Crude oil was higher closing above USD100/barrel for the first time on the weekly chart in six months. Even so as we approach the end of 2011 front month soybeans are more than USD2.50/bu lower than where they ended 2010. South American weather has been fairly non-threatening so far although it's early days yet.

Corn: Dec 11 Corn closed at USD5.86 1/2, down 8 1/4 cents; Mar 12 Corn closed at USD5.95 1/4, down 6 1/4 cents. Corn was 4 cents higher on the week. Funds sold an estimated 7,000 contracts on the day. The latest commitment of traders data shows them continuing to reduce their net long position which now stands at the lowest in almost 18 months. China's National Bureau of Statistics pegs this year's corn crop there at 191.75 MMT, 8.2% up on last year. That's part of a total grain harvest of over 571 MMT, they say - the eight straight year of increases. Normally the market would take those numbers with a pinch of salt, they haven't however been as active in the corn market of late as their "insatiable" appetite would seemingly suggest with prices below USD6/bushel.

Wheat: Dec 11 CBOT Wheat closed at USD6.12 1/4, up 10 1/4 cents; Dec 11 KCBT Wheat closed at USD6.76, up 13 cents; Dec 11 MGEX Wheat closed at USD8.56, up 1 1/2 cents. On the week as a whole Chicago wheat was up 37 3/4 cents, with Kansas rising 32 1/2 cents and Minneapolis up 28 3/4 cents. Fund money reduced their net short position on Chicago wheat for the week through to Tuesday, but still hold a significant short. Higher prices will do little to improve US exports which have dropped off sharply in the second quarter of the current marketing year. Australia's wheat crop continues to take a quality hit from widespread harvest rains. China's wheat crop came in at just under 118 MMT this year, according to their National Bureau of Statistics.