Chicago Close - Monday

Posted by Nogger - a legend in his own mind at 07:54 | Categorized as

18/06/12 -- Soybeans: Jul 12 Soybeans closed at USD13.84 1/4, up 8 1/4 cents; Nov 12 Soybeans closed at USD13.38 1/4, up 25 1/4 cents; Jul 12 Soybean Meal closed at USD412.90, up USD2.80; Jul 12 Soybean Oil closed at 48.76, up 32 points. Weekend rains that delivered less than they promised and relief at the Greek election results were responsible for a bit of "risk on" activity, with funds buying an estimated 6,000 soybean contracts on the day. US weather forecasts going forward are far from ideal, generally offering only scattered shower opportunities and warm temperatures. The Rosario Grains Exchange estimated Argentina’s soybean crop at 40.5 MMT vs. their May estimate of 40.9 MMT and the USDA's 41.5 MMT. The USDA cut their US soybean crop ratings from 60% to 56% good/excellent.

Corn: Jul 12 Corn closed at USD5.99 1/2, up 20 cents; Dec 12 Corn closed at USD5.34, up 28 cents. Funds were said to have stepped in to buy an estimated 20,000 corn contracts on the day, sending prices sharply higher. The early planting scenario means early maturity and with it we have an early weather market scenario as corn enters the key pollination period under varying degrees of stress in many states. The Rosario Grains Exchange estimated Argentina’s corn crop at 19.0 MMT unchanged from its May estimate, but 2 MMT lower than the current USDA prediction. After the close the USDA cut US good/excellent crop ratings by 3 percentage points to 63% versus 70% a year ago.

Wheat: Jul 12 CBOT Wheat closed at USD6.30 1/4, up 20 3/4 cents; Jul 12 KCBT Wheat closed at USD6.50 1/2, up 20 1/2 cents; Jul 12 MGEX Wheat closed at USD8.02 1/2, up 15 cents. Funds were said to have been net buyers of around 4,000 Chicago contracts on the day. Rabobank estimated the EU–27 wheat crop at 132.5 MMT, which is 1.5 MMT more than the USDA said last month. The USDA said that the US winter wheat harvest is now almost at the hallway point - 48% done versus just 16% normally. Spring wheat is well advanced in terms of maturity at 33% headed compared to only 7% normally. Good to excellent crop conditions rose one percentage point for both spring wheat (to 76%) and winter wheat (54%).