Chicago Soybeans Set Highest Close Since September

13/03/12 -- Soybeans: Mar 12 Soybeans closed at USD13.48 3/4, up 18 1/4 cents; Nov 12 Soybeans closed at USD13.11 1/2, up 12 cents; Mar 12 Soybean Meal closed at USD363.80, up USD5.40; Mar 12 Soybean Oil closed at 54.52, up 89 points. Beans, meal and oil all closed at their highest levels since September with funds buying an estimated 4,000 soybean contracts in the day. Soybeans have been weak relative to corn and wheat for the past couple of session but had little trouble returning as the strongest leg today. Going forward the fundamentals for beans are the most bullish.

Corn: Mar 12 Corn closed at USD6.74, up 2 1/2 cents; Dec 12 Corn closed at USD5.67 1/2, down 1 cent. The USDA announced the sale of 240,000 MT of corn for 2011/12 delivery to unknown. Maybe it was China? If so maybe the trade was disappointed that it wasn't more, or maybe the 26 1/2 cents that corn has rallied since the Chinese rumours emerged on Friday is considered enough for now? Much warmer than normal temperatures across much of the Midwest over the next fortnight will encourage fieldwork, the 2012 crop looks like getting into the ground with a good shot at maximising yields.

Wheat: Mar 12 CBOT Wheat closed at USD6.51 1/2, down 1 1/4 cents; Mar 12 KCBT Wheat closed at USD6.85, down 6 1/2 cents; Mar 12 MGEX Wheat closed unchanged at USD8.10 3/4. For wheat there was little in the way of fresh news today. Kazakhstan’s March 1st grain stocks are pegged at 17.83 MMT, a weighty number which will see a large carryover into 2012/13. The Ukraine Ministry lowered their wheat crop estimate by 2 MMT to 14 MMT, a 37% drop on output last year. Dryness in parts of Europe, and Morocco too, may harm wheat production there. Recent beneficial rains have boosted the Oklahoma wheat crop condition to 66% good to excellent from 4% from a week ago, with Kansas at 53% good to excellent, up 3% from a week ago.