Chicago Soybeans Rise As Corn And Wheat Slump

06/03/12 -- Soybeans: Mar 12 Soybeans closed at USD13.29 3/4, up 10 1/2 cents; Nov 12 Soybeans closed at USD12.93 1/4, up 4 1/4 cents; Mar 12 Soybean Meal closed at USD363.10, up USD6.90; Mar 12 Soybean Oil closed at 52.92, down 49 points. Beans bucked a general commodities shake out to maintain their place as easily the strongest leg of the grains sector as corn and wheat slumped. Funds were said to have bought 6,000 soybean contracts on the day. ABARES estimate the Brazilian soybean harvest at 71 MMT this year, despite the drought in the south that's still the second largest on record. Argentina's harvest will come in at 48 MMT, they add. The USDA will issue revised forecasts on Friday.

Corn: Mar 12 Corn closed at USD6.58, down 8 1/4 cents; Dec 12 Corn closed at USD5.63 1/2, down 7 3/4 cents. unlike soybeans corn succumbed to outside market weakness, with crude and equities sharply lower, and concerns over Europe and China. There was also some evidence of unwinding of long corn, short soybean spreads. Funds were said to be net sellers of 12,000 contracts on the day. ABARES forecast both world and US production at record levels in 2012/13 at 887 MMT and 333 MMT respectively.

Wheat: Mar 12 CBOT Wheat closed at USD6.54, down 13 3/4 cents; Mar 12 KCBT Wheat closed at USD6.87 1/2, down 18 cents; Mar 12 MGEX Wheat closed at USD8.10, down 21 1/4 cents. Wheat posted significant losses in all three exchanges as outside influences dragged prices lower and funds sold an estimated 3,000 CBOT contracts on the day. With record large world stocks there's little to support wheat on a day like this. ABARES forecast a 58 MMT US wheat crop this year, an increase of 6% on 2011. Output in Europe, Russia and Canada is also seen rising.