USDA Report Sends Chicago Lower

09/02/12 -- Soybeans: Mar 12 Soybeans closed at USD12.27 1/2, down 4 cents; Nov 12 Soybeans closed at USD12.38 1/2, down 1 1/2 cents; Mar 12 Soybean Meal closed at USD321.00, down USD0.70; Mar 12 Soybean Oil closed at 52.54, down 4 points. The long awaited USDA numbers came in more or less in line withe expectations for beans. Argentina's soybean production was cut 2.5 MMT to 48.5 MMT and Brazil's output was reduced 2 MMT to 72.0 MMT. World ending stocks were decreased to 60.28 MMT from 63.43 MMT and US carryout was pegged at 275 million bushels, exactly what the trade forecast. Weekly export sales of 603,200 MT for 2011/12 and 55,000 MT for delivery in 2012/13 were also bang in line with expectations of 550-750 TMT. Even so, bearish wheat data dragged the market lower.

Corn: Mar 12 Corn closed at USD6.37, down 5 1/2 cents; Dec 12 Corn closed at USD5.68, down 5 1/2 cents. As with beans corn was dragged lower by wheat despite the USDA coming up with pretty much what the trade expected. Argentine corn output was lowered 4.0 MMT to 22.0 MMT, although it may have been a slightly bearish surprise to see Brazilian production left unchanged at 61.0 MMT. World corn ending stocks were dropped to 125.35 MMT from 128.14 MMT. US corn ending stocks were reduced by marginally less than anticipated to 801 million. Weekly ethanol production slowed to 923,000 but it's too early to say that this is the start of a trend.

Wheat: Mar 12 CBOT Wheat closed at USD6.46, down 14 3/4 cents; Mar 12 KCBT Wheat closed at USD6.92, down 18 cents; Mar 12 MGEX Wheat closed at USD8.31 3/4, down 9 3/4 cents. The stand out number of the whole day was the USDA raising world wheat ending stocks to an all-time high 213.1 MMT. That beat the previous record of 210.4 MMT set in 1999/2000. US exports were raised half a million to 25.5 MMT, Argentina's were increased by a similar amount, with Russia's gaining by 1 MMT. India saw it's production raised to a record 86.9 MMT. Global consumption was reduced this month to 680.5 MMT and now falls 12.4 MMT lower than world production.