Chicago Nosedives Led By Corn
19/12/12 -- Soycomplex: Jan 13 Soybeans closed at USD14.37, down 29 cents; Mar 13 Soybeans closed at USD14.31, down 29 1/2 cents; Jan 13 Soybean Meal closed at USD436.50, down USD8.40; Jan 13 Soybean Oil closed at 48.41, down 76 points. Funds dumped another 8,000 lots of their soybean length in further year-end liquidation. Spillover weakness from corn also drove beans lower despite US analytical firm Informa Economics cutting their forecast for 2013 soybean plantings in t he US by more than a million acres to 78.9 million. Yesterday's Chinese cancellations still has the soybean market rattled. Tomorrow's weekly export sales report will therefore be of particular interest, with the trade expecting soybean sales of 650-800,000 MT.
Corn: Mar 13 Corn closed at USD7.03, down 17 cents; May 13 Corn closed at USD7.07, down 16 3/4 cents. Corn took a complete bath, with prices now threatening to fall below USD7.00/bushel for the first time for a front month since the first trading day of July. Informa increased their corn planting estimate for 2013 in the US to 99 million acres, 1.3 million more than their previous forecast. If true this represents an increase of 2.1 million acres on this year's planted area, and that was the largest acreage in 75 years. Unlike soybeans, US corn sales have consistently disappointed in recent weeks. Trade estimates for tomorrow's weekly export sales are 325-550,000 MT. Brazilian corn still undercuts US origin material into Asia, whilst Ukraine corn is also competitive.
Wheat: Mar 13 CBOT Wheat closed at USD8.05 3/4, down 5 1/2 cents; Mar 13 KCBT Wheat closed at USD8.58, down 2 1/2 cents; Mar 13 MGEX Wheat closed at USD8.95 1/2, down 6 cents. Wheat got support from a clean sweep in the latest GASC tender, plus the announcement by the USDA of a further additional sale of 110 TMT to the private Egyptian buyers. Acute weakness in corn however proved too strong to resist. The trade is optimistic that US wheat sales will finally now start to pick up as Black Sea offers have dried up and European availability also starts to tighten. Trade estimates for tomorrow's weekly export sales are 400-600,000 MT. Informa lowered their US winter wheat plantings estimate to 42.2 million acres from 42.5 million, with the spring wheat area left unchanged.
