Chicago Soybeans Race To Six Month Highs

26/03/12 -- Soybeans: May 12 Soybeans closed at USD13.79 1/2, up 13 3/4 cents; Nov 12 Soybeans closed at USD13.29 1/2, up 7 cents; May 12 Soybean Meal closed at USD377.90, up USD4.90; May 12 Soybean Oil closed at 55.43, up 55 points. This was a six month closing high for beans, spurred on by Oil World saying that 2011/12 world production was 2 MMT lower than the USDA currently state and around 21 MMT down on last year. Meanwhile, AgRural cut their Brazilian crop estimate to 66.7 MMT, saying that harvesting is 61% complete as of Friday. Funds were said to have been net buyers of 9,000 soybean contracts on the day.

Corn: May 12 Corn closed at USD6.37 3/4, down 8 3/4 cents; Dec 12 Corn closed at USD5.53 1/4 down 4 1/4 cents. The prospect for large US spring plantings weighed on corn. Weekly export inspections were also uninspiring at 22.2 million bushels, half of last week's total. Year to date inspections are now 920 million bushels, 45 million below this time last year. The much warmer than normal temperatures and largely favourable Midwest conditions see fieldwork progressing at a record pace. Everybody seems to agree that we will have the largest US corn plantings since 1944, the only question is how high? A Reuters survey estimates them at 94.72 million acres, versus 91.9 million in 2011.

Wheat: May 12 CBOT Wheat closed at USD6.59 1/2, up 5 1/4 cents; May 12 KCBT Wheat closed at USD6.99, up 4 1/2 cents; May 12 MGEX Wheat closed at USD8.22 up 4 1/2 cents. Wheat benefited from a weaker dollar and dryness in Europe following earlier winterkill ideas pushing prices this side of the pond sharply higher. Corn is seen stealing some wheat acres in the US this spring, with all wheat plantings forecast at 57.4 according to Reuters compared with the USDA's suggestion of 58 million at last month's Outlook Forum. Weekly export inspections were 15.4 million bushels, 5.5 million down on last week and little more than half of a year ago. Year to date inspections of 811 million lag 2010/11 by 157 million.