Chicago Beans Stage Partial Recovery From Steep Early Losses

06/07/16 -- Soycomplex: Beans closed lower, but well off session lows as the fallout from good weekend rains continues. Some continue to point to a long-term drier/hotter forecast for August, but that's a long way off and could easily change. Heavily long fund money wants out, so down is the path of least resistance. A USDA attaché in China said that feed industry growth there could push 2016/17 soybean imports up to a record 86 MMT. Jul 16 Soybeans closed at $11.06 1/4, down 10 3/4 cents; Nov 16 Soybeans closed at $10.73 1/4, down 4 cents; Jul 16 Soybean Meal closed at $386.00, up $0.60; Jul 16 Soybean Oil closed at 30.25, down 57 points.

Corn: The market closed with significant losses, ending lower for a fifth session in a row. As with beans, weather related fund liquidation is the key reason behind the move. Active showers, and the prospect of more to come - the 5 day models are projecting upwards of 4 inches for Iowa - have sent the bulls scurrying for the exits. It is estimated that funds have now halved their long position in under a week. The late rally in beans didn't spill over into the corn pit today, which stayed locked in around 10 cents lower. Jul 16 Corn closed at $3.35 3/4, down 8 1/4 cents; Sep 16 Corn closed at $3.41 1/2, down 9 1/4 cents.

Wheat: The wheat market ended lower. Apart from lower production worries in odd parts of Europe, wheat hasn't got a bullish story. Bumper production appears to loom from Russia and Ukraine again this year. Meanwhile in Canada, "Prairie crops are in great shape, much better than last year after weather conditions this summer have been exceptionally wet in the 3 main prairie farm provinces Saskatchewan, Alberta and Manitoba," said Martell Crop Projections. "Daphne Cruise, the regional crop specialist with Saskatchewan Agriculture, anticipates a bumper harvest, claiming the crop has the potential to rival the 2013 crop. Wheat production then totaled 37.53 MMT, the largest crop on record," they add. Jul 16 CBOT Wheat closed at $4.15 3/4, down 3 3/4 cents.