Chicago Reverses Tuesday's Losses

22/02/12 -- Soybeans: Mar 12 Soybeans closed at USD12.72 1/4, up 1 1/4 cents; Nov 12 Soybeans closed at USD12.64, up 1 3/4 cents; Mar 12 Soybean Meal closed at USD331.30, up USD1.10; Mar 12 Soybean Oil closed at 54.22, up 16 points. Funds were said to have bought 2,000 soybean contracts as beans closed higher for the third session in a row. China "bought" 175,000 MT of soybeans for 2012/13, although this recent spate of new crop sales is only individual confirmation and pricing of last week's business done when the Chinese delegation was in tow.

Corn: Mar 12 Corn closed at USD6.38 1/4, up 8 3/4 cents; Dec 12 Corn closed at USD5.64 1/2, up 3/4 cent. For corn and wheat it was "Turnaround Tuesday" a day late due to the President's Day holiday. Funds were said to have bought 10,000 contracts today, a reversal from selling 12,000 yesterday. Talk of Japan switching corn purchases back to the US following shipping delays from Ukraine added support. Despite drought in the south, Brazil is still expecting a record 60-61 MMT corn crop this year. The USDA will likely forecast a sizeable jump in US corn plantings for 2012 and ending stocks for 2012/13 later this week.

Wheat: Mar 12 CBOT Wheat closed at USD6.44 1/2, up 11 1/2 cents; Mar 12 KCBT Wheat closed at USD6.85, up 8 cents; Mar 12 MGEX Wheat closed at USD8.18 1/4, up 1 1/2 cents. Wheat also completely reversed Tuesday's losses with funds stepping in for an estimated 3,000 Chicago contracts having sold 4,000 yesterday. Snow and rain for the PNW and Northern Plains should improve moisture deficits there. Reuters report that Canadian farmers intent to increase their spring wheat sowings this year. Last season's plantings were curtailed by flooding, this season it's much drier, maybe too dry, only time will tell. Things can go from one extreme to the other very quickly here.