Chicago Closing Comments - Wednesday
03/12/14 -- Soycomplex: Beans closed with modest gains, but failed to break through the $10/bushel mark on front month Jan 15. Fresh news was generally lacking. The dollar rose to new 5-year highs. Informa estimated Brazilian 2014/15 production at 93.5 MMT, with Argentina at 55.5 MMT, which is broadly similar to the USDA's 94 MMT and 55 MMT. Trade estimates for tomorrow's weekly export sales report for are around 700-900 TMT for beans. Jan 15 Soybeans closed at $9.98 1/4, up 2 1/2 cents; Mar 15 Soybeans closed at $10.05 1/4, up 2 1/4 cents; Dec 14 Soybean Meal closed at $381.10, down $2.00; Dec 14 Soybean Oil closed at 31.86, up 69 points.
Corn: The corn market closed slightly steadier. "Failure to take out and make new lows prompted short-covering," said Benson Quinn. Volume was low however, they added. The USDA announced 196,000 MT of US corn sold to Mexico for 2014/15 shipment under the daily reporting system. Informa estimated that Brazilian 2014/15 corn production will drop to 68.7 MMT, with Argentine production at 22.0 MMT. The Brazilian estimate is a lot lower than the USDA's current 75 MMT forecast, and the Argentine figure compares to 23 MMT from Washington. The weekly US ethanol grind came in at 962,000 barrels/day, down from 982,000 bpd last week, although still a respectable total. Ethanol margins are still said to be good. Trade estimates for tomorrow's weekly export sales report are in the region of 600-850 TMT. Dec 14 Corn closed at $3.68 3/4, up 1 cent; Mar 15 Corn closed at $3.82, up 3/4 cent.
Wheat: The wheat market closed sharply lower as some of the spec money that had entered the fray, on hopes/fears that Russia was about to issue some form of export ban waned. This may not be the end of the issue though by any means. Russian wheat was offered in Egypt's tender, but it was too expensive to feature, and it was only a couple of cargoes. They finished up booking two cargoes of Romanian and one of Ukraine origin. US material was offered, but was also too dear. French wheat was kicked out by higher freight costs. Ukraine said that it had exported 15.6 MMT of grains so far this season, which is 1 MMT higher than this time last year. Tomorrow's weekly export sales for wheat are only expected to be in the region of 300-400 TMT, with the continued strength of the US dollar a major hurdle. Dec 14 CBOT Wheat closed at $5.97, down 8 1/4 cents; Dec 14 KCBT Wheat closed at $6.31 3/4, down 17 cents; Dec 14 MGEX Wheat closed at $6.35 1/2, down 20 1/2 cents.
