Chicago Rallies, Led By Beans
21/11/16 -- Soycomplex: Soybeans closed sharply higher, helped by another week of stellar weekly export inspections - 2.666 MMT (market expectations of 1.7-2.0 MMT). Loadings to date are running 3.7 MMT above a year ago versus a projected USDA annual increase of 3.1 MMT and currently showing little sign of letting up. The Chinese Yuan fell to its weakest level in 8 years today, adding to the bullish tone. South American weather looks friendly, but their crop is a long way from being a reality yet. Fund money was credited with being a net buyer of around 13,000 soybean contracts on the day. Jan 17 Soybeans settled at $10.20 1/4, up 26 1/2 cents; Mar 17 Soybeans settled at $10.28 1/2, up 26 1/4 cents; Dec 16 Soybean Meal settled at $319.70, up $9.30; Dec 16 Soybean Oil settled at 34.64, up 59 points.
Corn: The corn market closed around 4 cents higher, garnering support from surging soybeans. Weekly export inspections came in at 875,976 MT, in line with the expected 800 TMT to 1 MMT. Loadings to date are up 5.3 MMT versus the projected 8.32 MMT annual estimate from the USDA. The current soybean/corn price ratio is now 2.9:1, which will have US growers thinking about planting more soybeans and less corn in 2017 if it stays like that. Ukraine reported their 2016 corn harvest to be 79% complete at 20.84 MMT. Ukraine seaports exported 616.7 TMT of grains last week of which two thirds (408.2 TMT) was corn. Russian seaports shipped out 444.6 TMT of grains last week of which 26% (115.2 TMT) was corn. Russia's season to date corn exports are 1.45 MMT, but should pick up from here. Fund money was credited with being a net buyer of around 10,000 corn contracts on the day. Dec 16 Corn settled at $3.49 3/4, up 4 1/4 cents; Mar 17 Corn settled at $3.57 3/4, up 4 1/4 cents.
Wheat: The wheat market closed mixed, Weekly export inspections of 429,770 MT were towards the lower end of trade estimations. The bulls talk dryness in some the key US winter wheat growing areas, along with ideas of reduced acres. The bears say that it's the here and now that's more important, and that the world remains awash with wheat. Still, US YTD export inspections are running more than 29% ahead of a year ago. Winter wheat planting in Ukraine is said to be 95% complete. Conditions in the Ukraine are better than last year with 83% of the crop in satisfactory to good condition. The Russian Ministry said that season to date grain exports (to Nov 16) total 14.77 MMT, a 4.6% decrease versus the same period in 2015/16. Wheat accounts for 79% (11.69 MMT) of that total, with barley a further 1.55 MMT and corn 1.45 MMT. Dec 16 CBOT Wheat settled at $4.10 1/4, up 2 1/4 cents; Dec 16 KCBT Wheat settled at $4.14 1/2, up 3/4 cent; Dec 16 MGEX Wheat settled at $5.26 3/4, down 2 1/2 cents.
