Chicago Soybeans Crash On Argentine Rains

30/01/12 -- Soybeans: Mar 12 Soybeans closed at USD11.85 1/4, down 33 3/4 cents; Nov 12 Soybeans closed at USD12.94 1/2, down 27 3/4 cents; Mar 12 Soybean Meal closed at USD312.70, down USD9.50; Mar 12 Soybean Oil closed at 50.25, down 134 points. Beans crashed lower on forecasts for a week of rain and cooler temperatures in Argentina. Whilst they may come too late to be of much use to corn they could certainly help beans recover and turn in a decent crop. Weekly export inspections of 41.5 million bushels were above trade expectation but the year-to-date pace is still well behind year ago levels. That may ultimately mean increased carryout at the end of the season.

Corn: Mar 12 Corn closed at USD6.31 3/4, down 10 cents; Dec 12 Corn closed at USD5.64 3/4, down 6 1/4 cents. Weekly corn export inspections of 22.7 million bushels were below expectations of 28-35 million. None of that total was for China either. They were open for business again today, having been closed for their Lunar New Year celebrations last week, but the Dalian futures whilst rising failed to match gains seen in Chicago last week. Funds sold an estimated 11,000 contracts on the day, the first time they've been sellers on a Monday since Christmas which maybe suggests a bit of month-end positioning going on. It was also corn's first decline in eight trading sessions, suggesting that some consolidation was perhaps overdue.

Wheat: Mar 12 CBOT Wheat closed at USD6.44 3/4, down 2 1/2 cents; Mar 12 KCBT Wheat closed at USD6.97 1/2, down 2 1/2 cents; Mar 12 MGEX Wheat closed at USD8.19, down 7 1/4 cents. Chicago wheat managed to hold up rather well given weakness in corn and beans, with funds only light sellers of 2,000 lots. That means that the hefty fund short position has been added to today, which could continue to support wheat, and Chicago wheat in particular, relative to the other grains. Weekly export inspections of 18.7 million bushels were in line with expectations. Year-to-date shipments lag last season by around 100 million. Icy cold temperatures for eastern Europe this week are seen as maybe causing some winter crop damage.