Chicago Soybeans Close At Fresh 9-Month Highs Friday
01/04/16 -- Soycomplex: Beans closed at new highs for the move, The IGC estimated world 2015/16 soybean production 2 MMT higher than a month ago ago 323 MMT, but cut consumption amongst major exporters by 5 MMT to 22 MMT. For 2016/17 they see global output at 329 MMT, with inventories dropping to 18 MMT. Buenos Aires Grain Exchange increased its Argentine soybean production estimate to 60 MMT from 58 MMT. The weekly commitment of traders report has managed money increasing their net soybean long for the week through to Tuesday night by by almost 22k lots to 75k contracts. The USDA today said US processors crushed 4.64 MMT of soybeans during February, down from 4.81 MMT in January. (Presumably due to seasonal factors, a shorter month etc). May 16 Soybeans settled at $9.18 1/4, up 7 1/2 cents; Jul 16 Soybeans settled at $9.26, up 8 1/4 cents; May 16 Soybean Meal settled at $272.30, up $2.00; May 16 Soybean Oil settled at 34.45, up 23 points.
Corn: The market closed a couple of cents or so firmer. Yesterday's traded volume in Chicago corn set a new all-time daily record by all accounts. The bearish after-effects of yesterday's USDA acreage report may take some working off just yet. The CFTC reported managed money on the wrong side of this move, trimming their net short position by 465k lots to around 108.5k contracts as of Tuesday night. Oil World estimated 2017 Argentinean corn production at 33 MMT next year, presumably envisaging a return to more "normal" crop rotation under the new government with export duties and quotas now removed. The IGC raised global 2015/16 corn output by 3 MMT to 972 MMT, with ending stocks unchanged at 206 MMT. For 2016/17 they see the world crop at 993 MMT, a jump of 2.16%, with stocks little changed at 58 MMT. South Korea were reported to have bought 272,000 MT of corn of optional origin today. May 16 Corn settled at $3.54, up 2 1/2 cents; Jul 16 Corn settled at $3.57 3/4, up 2 cents.
Wheat: The wheat market closed a touch higher on the day and with decent gains for the week. The USDA appeared to confirm yesterday that ultimately the cure for low prices is low prices, with US growers planting the smallest all wheat acres for the 2016 harvest since 1970. The Rest of the World look like following suit, but to a lesser degree. World wheat production in 2016/17 was estimated at 713 MMT by the IGC, down 2.9% versus this season. Reduced consumption though means that ending stocks amongst the major exporting nations will only decline by 3 MMT to 67 MMT. This season's wheat ending stocks meanwhile are estimated at a 29-year high, they said. Managed money took 12k lots off their overall short in Chicago wheat for the week through to Tuesday night, leaving them net short just under 70k contracts. Jul 16 CBOT Wheat settled at $4.83, up 2 1/4 cents; Jul 16 KCBT Wheat settled at $4.88 1/2, up 1 1/2 cents; Jul 16 MGEX Wheat settled at $5.38, up 1/4 cent.
