Chicago Closing Comments

Posted by Nogger - a legend in his own mind at 08:57 | Categorized as

23/05/12 -- Soybeans: Jul 12 Soybeans closed at USD13.62 1/2, down 19 3/4 cents; Nov 12 Soybeans closed at USD12.57 3/4, down 24 1/2 cents; Jul 12 Soybean Meal closed at USD405.80, up USD0.80; Jul 12 Soybean Oil closed at 48.91, down 155 points. Reports of China cancelling soybean purchases amidst a slowdown in growth there was bearish, along with news that the government there will auction off 600,000 MT of state-owned soybeans tomorrow (although the age & condition of these beans may be questionable). So too was a cooler and wetter outlook in the 6-10 day forecast. Outside markets offered little support with NYMEX crude falling below USD90/barrel for the first time in almost 7 months. Funds sold an estimated 9,000 soybean contracts on the day. Trade estimates for tomorrow's weekly export sales are in the 1.0-1.25 MMT area.

Corn: Jul 12 Corn closed at USD6.03 1/2, up 6 1/2 cents; Dec 12 Corn closed at USD5.23, up 1 cent. There are rumours circulating of Chinese corn purchases too, although some reports suggest that these are merely deferrals. Funds were sadi to have been net buyers of around 9,000 corn contracts on the day on switches between corn buying and wheat selling following last week's sharp rally in wheat. Asian buyers who had previously switched into cheaper feed what are now said to be reversing back into corn. Tightness in physical availability supported old crop values relative to new crop. Trade estimates for tomorrow's weekly export sales are in the 1.0-1.3 MMT area.

Wheat: Jul 12 CBOT Wheat closed at USD6.65 1/2, down 20 cents; Jul 12 KCBT Wheat closed at USD6.86 1/2, down 15 cents; Jul 12 MGEX Wheat closed at USD7.75 1/4, down 5 1/4 cents. Rain is in the forecast for the Great Plains and southern Russia, both of which are badly needed with many market observers saying that the next two weeks is critical for the latter. Funds were net sellers of 6,000 Chicago wheat contracts on the day on unwinding of spreads with corn. Asian buyers are seen switching out of wheat and into corn at current price differentials. Spain cereal crop may see losses up to 26% due to drought this year, say Copa Cogenca. Meanwhile Morocco's may slump by more than half to 3.8 MMT, according to the FAO.