Chicago Closing Comments - Friday

13/07/12 -- Soybeans: Jul 12 Soybeans closed at USD16.42, up 16 1/4 cents; Nov 12 Soybeans closed at USD15.52 1/2, up 23 1/2 cents; Jul 12 Soybean Meal closed at USD488.90, up USD10.10; Jul 12 Soybean Oil closed at 53.57, up 42 points. For the week Jul 12 beans gained 22 1/4 cents, Nov 12 beans 46 3/4 cents, Jul 12 meal added USD17.30 and Jul 12 oil advanced 30 points. Funds were said to have been net buyers of around 4,000 soybean contracts on the day. Hot and dry remains the outlook. "Corn and soybean farms have built up a 3-5 inch moisture deficit in the recent 30 days. The 5-day forecast calls for only light to moderate showers, while temperatures trend higher into the 90s F. Midwest rainfall next week is projected to be normal while heat continues," say Martell Crop Projections.

Corn: Jul 12 Corn closed at USD7.55 3/4, down 15 1/2 cents; Dec 12 Corn closed at USD7.40 1/4, up 8 cents. For the week Jul 12 corn was 12 1/2 cents higher, with Dec 12 gaining 47 1/4 cents. Jul 12 went off the board today, with September now the new front month. Funds were said to have been net buyers of around 12,000 corn contracts on the day. "Extreme heat and drought has contributed to a severe and irreversible damage in corn. Though temperatures have backed off from the 100 F heat wave early in July, very low humidity and persistent drought kept stress on developing crops. Corn ratings July 8 were the worst since 1988, a historic drought year when production fell by 39%," say Martell Crop Projections.

Wheat: Jul 12 CBOT Wheat closed at USD8.42, up 9 1/4 cents; Jul 12 KCBT Wheat closed at USD8.41, up 4 cents; Jul 12 MGEX Wheat closed at USD9.35 1/4, up 2 1/2 cents. For the week Chicago wheat was 50 3/4 cents higher, with Kansas gaining 51 1/2 cents and Minneapolis adding 21 1/2 cents. As the US winter wheat harvest winds down attention switches to South America. "A winter drought has worsened in Argentina’s leading wheat province Buenos Aires, where practically no rain has occurred for over a month. Also very dry are Cordoba and Santa Fe, the other wheat provinces. Hard freezes have been common in recent days in Buenos Aires temperatures falling as low as 25 F. Cold and dry weather is not conducive to winter wheat seeding and development," say Martell Crop Projections.