Chicago Beans End At Highest Since August
29/03/16 -- Soycomplex: Beans closed higher as May 16 Soybeans settled at $9.16, up 7 cents; Jul 16 Soybeans settled at $9.22 3/4, up 6 3/4 cents; May 16 Soybean Meal settled at $273.20, up $1.10 and May 16 Soybean Oil settled at 34.05, up 42 points. For beans these were the highest closing levels seen on a front month since August. A sharp prop in US dollar values helped as even the Fed turn now more cautious on interest rates. The trade is now watching developments in South America and next week's US planting intentions report. US trade analysts are expecting the 2016 US soybean area to come in a little over 83 million acres versus 82.5 million last year.
Corn: The market closed with May 16 Corn at $3.73, up 2 1/2 cents and Jul 16 Corn settling at $3.77 1/4, up 2 1/2 cents. Lower crude was supportive, along with the weaker US dollar. Analyst estimates for this week's reports are for March 1 US corn stocks of 7.798 billion bushels versus last year's 7.750 billion, while planted acres are expected to be around 90 million for corn versus last year's 88 million. Trade guesses on plantings range from 89.0 to 92 million acres. China said that it is going to cease supporting domestic corn prices in the way that has led to them stock-piling high reserves whilst still importing cheaper volumes South American, Ukraine and US origin material. The latter will now have to find new homes. This could also have a negative impact on DDGs, as these are widely viewed as the next to suffer from Beijing interference.
Wheat: The wheat market closed around 4-5 cents higher, in line with beans and corn's gains. At the close Jul 16 CBOT Wheat settled at $4.83 3/4, up 5 3/4 cents; Jul 16 KCBT Wheat settled at $4.92 3/4, up 4 3/4 cents; Jul 16 MGEX Wheat settled at $5.30 1/4, up 4 3/4 cents. Wednesday's USDA report is expected to show US all wheat plantings of 51.70 million acres for the 2016/17 marketing year - the smallest area sown since 1970. Brazil are seen importing more US wheat in 2016/17 due to production/quality problems again with their own crop and that in neighbouring Argentina. The unseasonably mild weather that has dominated the Canadian prairies means that wheat plantings there have got off to a timely beginning, lessening the risk for potential freeze damage with early maturity later in the season, say Martell Crop Projections.