Chicago Close

Posted by Nogger - a legend in his own mind at 08:52 | Categorized as

01/07/11 -- Soybeans: Jul 11 soybeans closed at USD13.22 1/4, up 16 cents; Nov 11 soybeans closed at USD13.12 1/2, up 18 1/2 cents; Jul 11 soybean meal closed at USD340.90, up USD8.70; Jul 11 soybean oil closed at 55.16, up 12 points. On the week overall soybeans, meal and oil were virtually unchanged. Having got dragged lower by corn yesterday, soybeans managed to reassert themselves today as the USDA numbers were in fact bullish for soybeans as far as new crop production was concerned pegging planted area down 1.4 million from March ideas at 75.2 million acres. Money inflows, or outflows, still hold the key to market direction from here in my opinion. As fund cash pours out of corn it is interesting to note that today's commitment of traders report show managed money reducing their soybean longs to the lowest levels in a year.

Corn: Jul 11 corn closed at USD6.40 3/4, up 11 3/4 cents; Dec 11 corn closed at USD5.96 3/4, down 23 3/4 cents. Jul was down almost 30 cents on the week, with Dec losing around 35 cents. As with soybeans managed money has cut its net corn long to the lowest levels in a year. The USDA announced the sale of over a million tonnes of US corn to "unknown" today. That's split 360,000 MT old crop and 780,000 MT new crop and is widely rumoured to be China looking to pick up a bargain on this latest price shake-out. The markets are shut Monday for Independence Day, so it would be of no surprise to see some fireworks again when trading begins on the overnight session on Tuesday.

Wheat: Jul 11 CBOT wheat closed at USD5.84 1/2, down 1/4 cent; Jul 11 KCBT wheat closed at USD7.03, up 14 1/4 cents; Jul 11 MGEX wheat closed at USD8.31, up 7 3/4 cents. On the week as a whole CBOT wheat fell over 50 cents, with Kansas down more than 45 cents. Minneapolis wheat rose 5 cents. Growers on the northern Plains are struggling to get their remaining spring wheat in, and must be thinking about giving up by now. Ditto Canadian farmers across the border. Weakness from corn is weighing on wheat where managed money is now showing a net short position.