Chicago Soybeans Hit Highest Since September

27/02/12 -- Soybeans: Mar 12 Soybeans closed at USD12.93 3/4, up 14 3/4 cents; Nov 12 Soybeans closed at USD12.81 1/4, up 10 1/2 cents; Mar 12 Soybean Meal closed at USD340.90, up USD7.30; Mar 12 Soybean Oil closed at 54.46, up 17 points. Funds came in for 7,000 soybean contracts on the day as May closed above USD13/bu for the first time since September. The IGC pegged global soybean production at a three year low in 2012/13, principally due to drought in northern Argentina, southern Brazil and Paraguay. Local agency Ag Rural estimated this year's Brazilian crop at 68 MMT - 4 MMT below the USDA's number.

Corn: Mar 12 Corn closed at USD6.44 1/2, up 3 3/4 cents; Dec 12 Corn closed at USD5.57, down 1 cent. Corn gained nearby on spillover support from beans and strong demand with funds buying an estimated 9,000 contracts on the day. The gap between old and new crop continues to widen. China’s Ag Minister was apparently quoted on state run radio as saying that their total grain output this year could drop to 525 MMT compared to 571 MMT in 2011 due to the rising cost of fertiliser, labour and weather uncertainties.

Wheat: Mar 12 CBOT Wheat closed at USD6.45 3/4, up 4 3/4 cents; Mar 12 KCBT Wheat closed at USD6.85, up 4 cents; Mar 12 MGEX Wheat closed at USD7.90 3/4, up 4 1/4 cents. Fund buying in Chicago wheat was estimated at 4,000 contracts on the day. Wheat also derived spillover support from beans hitting their highest levels since September. Wheat doesn't really have a bullish storyline of it's own, weekly export inspections were well below the trade’s expectations at 9.375 million bushels - more than 10 million below the same week last year.