Chicago Beans Tumble
20/12/16 -- Soycomplex: Beans closed sharply lower on an improved weather outlook in Argentina and bird flu in Asia. Reuters reported that South Korea has culled 20 million birds since the H5N6 virus was first discovered there on November 18. There are also outbreaks in China and Europe too. Malaysia said that it will raise the export tax on palm oil from 6% to 7% starting January 2017. Argentine soybean exports were only 492 TMT in October versus 1.51 MMT a year previously. Jan/Oct exports are down 21% at 9.8 MMT. There were no new USDA sales announced this morning under the daily reporting system. Thin pre-holiday trade will likely add to volatility this week. Jan 17 Soybeans settled at $10.05 1/4, down 16 1/4 cents; Mar 17 Soybeans settled at $10.15 3/4, down 16 1/4 cents; Jan 17 Soybean Meal settled at $308.80, down $3.40; Jan 17 Soybean Oil settled at 36.06, down 50 points.
Corn: The market closed around 3 cents lower. AgRural estimated Brazil's full season corn crop at 59.9 MMT, up 47% from only 40.7 MMT last year. They see all corn output at 88.3 MMT, up 33%. Vietnam, the third largest importer of U.S DDGs, are said to have suspended intake beginning December 17th due to insect contamination. Bloomberg report that China may expand subsidies to farmers who grow soy, silage and alfalfa rather than corn. Chinese radio says that the government intend to reduce the 2017 corn area by nearly 1.65 million acres (1.8%) in continuing efforts to reduce reserve stocks. Argentina's October corn exports were up 60% at 1.89 MMT. That takes Jan/Oct exports to 21.2 MMT, a 32% hike versus 12 months previously. Mar 17 Corn settled at $3.50 1/4, down 3 cents; May 17 Corn settled at $3.57, down 3 cents.
Wheat: The wheat market closed with small losses. Egypt bought 180 TMT of Russian wheat, 120 TMT of Argentine and 60 TMT of Romanian origin in their tender. The Argentine wheat was around $13/tonne FOB under the price paid for Russian material. US wheat was not offered as part of the tender. Taiwan are tendering for 93,000 MT of US wheat. Jordan are in for 25,000 MT of optional origin wheat. Argentina said that they'd exported 369 TMT of wheat in October, up 29% on a year ago. Jan/Oct exports are almost double those of 2015 at 8.2 MMT. Frigid temperatures on the US Plains and Black Sea area keep getting flagged up as a potential worry down the line. Mar 17 CBOT Wheat settled at $4.03 1/4, down 1 3/4 cents; Mar 17 KCBT Wheat settled at $4.12 3/4, down 1 1/4 cents; Mar 17 MGEX Wheat settled at $5.40 3/4, down 1 cent.
