Chicago Soybeans Crash, Dragging Corn And Wheat Lower

07/12/15 -- Soycomplex: Beans closed with heavy losses, and are now back below the $9/bu mark. Weekly export inspections of 1.721 MMT were pretty decent, although YTD exports are only 92% of what they were a year ago. That was of course a record pace however. Brazilian weather is unchanged. Dry in the north/central areas and wet in the south. "Rainfall in the upcoming week is expected to continue below average in Mato Grosso and smaller soybean states to the north and east. Very generous rainfall 3-4 times normal is predicted in South Brazil. In between rather favourable rainfall is expected in Mato Grosso do Sul, southern Goias and Minas Gerais, all significant growing areas for soybeans," said Martell Crop Projections. The US Ag Attache in Argentina increased Argentine soybean exports to 11 MMT in 2015/16. The USDA are currently at 10.7 MMT and are due to release revised numbers on Wednesday. Jan 16 Soybeans settled at $8.82 1/4, down 23 3/4 cents; Mar 16 Soybeans settled at $8.85 3/4, down 22 1/4 cents; Dec 15 Soybean Meal settled at $278.90, down $6.20; Dec 15 Soybean Oil settled at 30.98, down 82 points.

Corn: The corn market closed around 7-8 cents lower. Crude oil closed below $38/barrel, to levels not seen since 2009, which clearly didn't help. OPEC seem in disarray concerning how to best support crude oil prices whilst stimulating demand hit by fracking. Weekly export inspections of 491,879 MT were moderate. YTD inspections are now 2.38 MMT smaller than they were this time a year ago. Mexico were reported to have purchased 115,000 MT of US corn this morning for 2015/16 delivery under the daily reporting system. Russian seaports were reported to have shipped out 44,800 MT of corn last week. Ukraine seaports exported 212,900 MT of corn last week. Commerzbank said that there was little chance of seeing corn returning above $4/bu in Chicago in the coming 12 month period. China imported a record monthly volume of 32.6 million gallons of US ethanol in October. For the first time ever, China served as the top customer for US ethanol, buying nearly half of all US ethanol exports of 70.1 million gallons. Canada was the second-leading destination. Total year-to-date US ethanol exports are 695.0 million gallons, 4% more than this time last year. Dec 15 Corn settled at $3.68 1/2, down 7 3/4 cents; Mar 16 Corn settled at $3.73, down 8 1/2 cents.

Wheat: The wheat market closed a bit lower, to varying degrees, across the three exchanges. Weekly export inspections of 225,034 MT were uninspiring, being 16.7% smaller than the same week a year ago. Season to date exports are 15% down year-on-year at 10.530 MMT. Dr Cordonnier reported that the wheat harvest in Rio Grande do Sul in southern Brazil is now complete. The heavy persistent rains that have dogged the growing season have taken the shine off the crop for another year it seems. "The total wheat production in the state is estimated at 1.48 MMT, which is down 34% from the 2.26 MMT estimated at the start of the growing season. In 2014, the state produced 1.67 MMT of wheat," he says, This then is the state's second poor wheat crop in a row, with low yields and poor quality. "Farmers in the state have already indicated that they intend to reduce their wheat acreage again in 2016. Therefore, it is estimated that Brazil's wheat imports will increase again next year," he adds. Indian temperatures 2-4C above normal are delaying wheat plantings and could ultimately cut yields, some are already suggesting. Ukraine said that 83% of it's winter grains area had emerged, of which 34% was in a weak/thinned condition. Dec 15 CBOT Wheat settled at $4.70 1/4, down 1 cent; Dec 15 KCBT Wheat settled at $4.61 1/2, down 2 cents; Dec 15 MGEX Wheat settled at $5.22, down 6 1/4 cents.