Chicago Dips On EU Jitters, South American Weather Forecasts

Posted by Nogger - a legend in his own mind at 09:23 | Categorized as

05/01/12 -- Soybeans: Jan 12 Soybeans closed at USD12.01 1/4, down 20 1/4 cents; Mar 12 Soybeans closed at USD12.09, down 21 cents; Jan 12 Soybean Meal closed at USD310.30, down USD7.20; Jan 12 Soybean Oil closed at 51.77, down 96 points. Funds ditched an estimated 6,000 soybean contracts on renewed Eurozone debt concerns and a wetter outlook for Argentina. A firm dollar and weaker crude added to the negative bias leading to a sharp correction which was maybe overdue. Even so beans are still a dollar higher than the December low. Estimates for tomorrow's weekly export sales report are 400-600 TMT.

Corn: Mar 12 Corn closed at USD6.43 1/2, down 15 cents; May 12 Corn closed at USD6.51 1/2, down 15 1/4 cents. Funds dumped an estimated 13,000 contracts on the day as European jitters returned to haunt the market. Estimates for tomorrow's weekly export sales report are 300-600 TMT. The USDA are out next week with their WASDE estimates, before that Informa are due to release their numbers tomorrow. Despite recent downgrades to production in Brazil and Argentina both are still set for historically high output.

Wheat: Mar 12 CBOT Wheat closed at USD6.29 1/4, down 20 3/4 cents; Mar 12 KCBT Wheat closed at USD6.86, down 28 cents; Mar 12 MGEX Wheat closed at USD8.18 1/2, down 20 1/2 cents. Funds were said to have sold around 4,000 Chicago wheat contracts on the day on spillover weakness from corn and beans. Bumper world stocks and sluggish US exports weigh. Estimates for tomorrow's weekly export sales are 300-500 TMT. Weekly shipments will also be under scrutiny as they have been regularly falling short of the level required to hit USDA targets for 2011/12.