Chicago Close -Tuesday
06/12/16 -- Beans closed higher, there was no "Turnaround Tuesday" today even if we did finish well off the intra-day highs. The USDA announced the sale of 198,000 MT of US soybeans for delivery to China during the 2016/17 marketing year, along with 246,000 MT to "unknown" and 132,000 MT to "unknown" for delivery during the 2017/18 marketing year. Stats Canada released a Canadian soybean production estimate of 6.46 MMT against the expected 6.2 MMT. European rapeseed prices are hitting 2 1/2 year highs on tight availability and already early concerns over plantings for 2017. Brazilian weather conditions look very good, Argentina less so. Brazil is 90% planted versus 88% last year and 80% on average at this time. The Argentine weather service is saying there's a high probability of Dec/Jan/Feb being drier than normal in central areas and Buenos Aires province, with temps normal to above normal. Jan 17 Soybeans closed at $10.47 3/4, up 4 1/4 cents; Mar 17 Soybeans closed at $10.57 3/4, up 4 1/2 cents; Dec 16 Soybean Meal closed at $320.20, up $2.50; Dec 16 Soybean Oil closed at 37.62, up 13 points.
Corn: Corn closed with small gains. The USDA reported sales of 276,000 MT of corn for delivery to South Korea during the 2016/17 marketing year under the daily reporting system. Stats Canada came out with a Canadian 2016 corn output estimate of 13.19 MMT versus the expected 13.1 MMT and compared to 13.56 MMT in 2015. Net US ethanol exports set an all-time record for the month of October and were the highest single month net export volume in 5 years at 122 million gallons the month before last. This was led by big sales to Canada and Brazil in the amounts of 35 million gallons and 43 million gallons respectively, reported FCStone. US DDG exports for October were slightly above the volume in September at 1.005 MMT. China continues to be a small customer compared to past years with only 124.7 TMT for the month, they add. Argentine weather remains a concern, although early calls on production are around 25-27% higher due to a sharp increase in plantings. Romania reported that it's 2016 corn harvest was down 5.6% on last year at 8.47 MMT due to a dry summer. In Russia, corn harvesting is 85.8% complete at 14.6 MMT. Dec 16 Corn closed at $3.51, up 1 1/2 cents; Mar 17 Corn closed at $3.60 1/2, up 1 1/4 cents.
Wheat: The wheat market closed mixed. Stats Canada put total Canadian wheat production at 31.7 MMT on a national average yield of 53.2 bu/acre. The trade was only expecting production at 30.7 MMT. This is also now 200,000 MT higher than the USDA's November estimate. ABARES ahev the Australian crop at 32.64 MMT versus the USDA’s 28.3 MMT estimate in November. Ikar cut their Russian wheat export forecast from 29 MMT to 28.5 MMT (USDA: 30.0 MMT) citing unfavourable weather and its impact on logistics, and intensified competition. "When the USDA first posited the export number for Russia it said it was a very aggressive number that required near perfection to achieve," said FCStone. Tunisia were said to have bought 117,000 MT of soft wheat for Jan/Feb shipment in a tender, along with 55,000 MT of feed barley, both of optional origin. Traders surmise that the wheat may have been most likely of Argentine or Russian origin. China only sold 15% of the 2.8 MMT of wheat reserves offered up for sale at auction. Jordan were said to have bought 50,000 MT of milling wheat of optional origin in a tender. Dec 16 CBOT Wheat closed at $3.89 1/2, up 1/4 cent; Dec 16 KCBT Wheat closed at $3.87, down 3 1/4 cents; Dec 16 MGEX Wheat closed at $5.38 3/4, up 1 1/4 cents.
