Chicago Close - Tuesday

02/07/13 -- Soycomplex: The same old, same old theme of old crop higher, new crop weaker continued today. The USDA reported better crop ratings than last week, up 2 points good/excellent to 67%, last night. With plantings at 92% we still have around 3 million acres of US soybeans waiting to go into the ground, this week is make or break, although ideal weather conditions are in the forecast for the Midwest. The IGC estimated the Argentine soybean crop at 52.5 MMT versus 48.5 MMT last year, but 2 MMT lower than the USDA. They have Brazilian output at 84.5 MMT (versus 81.3 MMT last year and 85.0 MMT from the USDA) and US production at 93.0 MMT (82.1 MMT and 92.3 MMT respectively). The Brazil Trade Ministry said Brazil exported 6.57 MMT of beans in June versus the record 7.95 MMT shipped in May. A Brazilian truckers strike continues through Thursday at 6 am local time. Brazilian union port workers announced they will be on a nationwide strike on July 10th. Jul 13 Soybeans closed at USD15.73, up 2 1/2 cents; Nov 13 Soybeans closed at USD12.42 1/2, down 3/4 cent; Jul 13 Soybean Meal closed at USD487.00, up USD2.20; Jul 13 Soybean Oil closed at 46.92, up 7 points.

Corn: The corn market was sharply higher nearby on old crop tightness and bargain hunting after a sharp decline on front month Jul 13 yesterday. The IGC estimated the Ukraine corn crop at 23.0 MMT versus 21.6 MMT previously and 20.9 MMT last year. Agritel say 24.9 MMT. The USDA go for 26.0 MMT. South Korea bought 55 TMT of Black Sea origin new crop corn at USD247 C&F (GBP162.50) for Nov shipments. Mato Grosso in Brazil are around 20% into their anticipated record sarfinha corn harvest, with Mato Grosso do Sul and Parana said to be around 10% complete. Lack of storage for the bumper harvest is said to be a problem with some corn having to be stored out in the open. The IGC estimated the Brazilian 2013/14 corn crop at 72.0 MMT versus 78.5 MMT in 2012/13. They have production in Argentina at 23.0 MMT (versus 26.0 MMT this year) and the US crop at 355 MMT versus 273.8 MMT in 2012/13. There's trade talk that Chinese private buyers bought at least 2 cargoes of US new crop corn yesterday. Jul 13 Corn closed at USD6.72 3/4, up 17 1/4 cents; Dec 13 Corn closed at USD5.02 3/4, up 1 1/2 cents.

Wheat: The wheat market closed mixed. Improved harvest conditions in the western plains and better than expected yields continue pressure the market into new lows but futures were able to rebound overnight following a surprise tender release for Egypt. Tunisia is tendering for 100,000 MT of wheat as well. Egypt re-entering he market after a 4 month absence was supportive, even if US wheat didn't feature in their buying order. CNGOIC estimated the Chinese wheat crop at 120.63 MMT versus 121.0 MMT from the USDA. The IGC estimated the Egyptian wheat crop at 9.4 MMT, up 0.4 MMT from their previous forecast and 10% higher than last year's 8.5 MMT production. They cut the Argentine wheat crop by 0.3 MMT from last month to 12.0 MMT, along with a 2 MMT reduction for India to 91.5 MMT. South Korean flour millers will meet this week to discuss ending a ban on US white wheat. Jul 13 CBOT Wheat closed at USD6.49 1/2, up 3 3/4 cents; Jul 13 KCBT Wheat closed at USD6.74, down 2 3/4 cents; Jul 13 MGEX Wheat closed at USD7.57, down 21 1/2 cents.