Chicago Soybeans And Corn Extend Rally

Posted by Nogger - a legend in his own mind at 08:22 | Categorized as

02/04/12 -- Soybeans: May 12 Soybeans closed at USD14.21, up 18 cents; Nov 12 Soybeans closed at USD13.85 1/4, up 27 1/4 cents; May 12 Soybean Meal closed at USD391.20, up USD2.50; May 12 Soybean Oil closed at 56.16, up 106 points. Funds were said to have bought around 9,000 soybean contracts on the day. May 12 closed around the middle of the day's trading range, with new crop gaining on old following Friday's bullish 2012/13 acreage number from the USDA. The latter also reported the sale of 120,000 MT of old crop beans to China despite current prices, along with 120,000 MT of new crop meal to unknown. The IGC forecast the world soybean crop in 2011/12 at a three-year low of 242.1 MMT vs Oil World's 243 MMT and the USDA's 245 MMT.

Corn: May 12 Corn closed at USD6.55, up 11 cents; Dec 12 Corn closed at USD5.45, up 4 3/4 cents. Unlike soybeans, for corn we have old crop widening the differential between it and new crop, in line with the USDA's projection for US corn plantings of 75.9 million acres this spring. After the close the USDA said that 3% of the 2012 corn crop has been planted so far, only just ahead of 2% a year ago and below trade expectations of 6-8% complete. Funds were said to have been net buyers of around 15,000 contracts on the day. The IGC cut 2011/12 world corn ending stocks by 4 MMT to 122 MMT, but raised production for 2012/13 to a record 900 MMT, a 4% increase on this season. South Korea bought 65 TMT of optional origin corn for August shipment.

Wheat: May 12 CBOT Wheat closed at USD6.57, down 3 3/4 cents; May 12 KCBT Wheat closed at USD6.90, down 7 1/2 cents; May 12 MGEX Wheat closed at USD8.49 1/4, up 11 3/4 cents. Unlike beans and corn funds were net sellers of Chicago wheat on the day, shorting an estimated 3,000 lots. The USDA pegged winter wheat crop conditions at 58% good/excellent, much better than the 37% this time last year. With 20% of the Ohio crop in poor/very poor condition there are some reports of wheat in the state being ripped up and replanted with soybeans. The USDA also said that 8% of the spring wheat crop has been planted as of April 1, versus 1% a year ago and 2% normally. The IGC said that world wheat production in 2012/13 to fall by 15 MMT to 681 MMT.