Chicago Wheat Rallies On Short-Covering Despite General Lack Of News
03/03/16 -- Soycomplex: Beans closed with small gains. Weekly export sales of 440,100 MT for 2015/16 were up 70 percent from the previous week's modest total and 35 percent above the prior 4-week average. Exports of 1,228,100 MT were down 14 percent from the previous week and, as ever, the primary destination was China (755,600 MT). The Brazilian real was stronger for a change, reaching it's highest level against the US dollar since late December. The FAO forecast world soybean production in 2015/16 at 320 MMT, which is unchanged from a month ago and 1 MMT less than the USDA. Mar 16 Soybeans settled at $8.56 1/4, up 2 cents; May 16 Soybeans settled at $8.63 3/4, up 2 1/4 cents; Mar 16 Soybean Meal settled at $262.00, up $0.80; Mar 16 Soybean Oil settled at 30.41, up 24 points.
Corn: The corn market closed a tad lower. Weekly export sales of 1,097,600 MT for 2015/16 were up 18 percent from the previous week and 25 percent from the prior 4-week average and in line with trade expectations. Exports of 789,800 MT were down 9 percent from the previous week, but up 13 percent from the prior 4-week average. The FAO estimated the world 2015/16 corn crop at 1000 MMT, down 4 MMT from previously, although still 30 MMT higher than the USDA. The drop was "reflecting reduced production estimates for India, Iran, Mexico and Myanmar," they said. Ending stocks were forecast at 218 MMT versus 219 MMT last month and the USDA's 209 MMT. Mar 16 Corn settled at $3.53 3/4, down 3/4 cent; May 16 Corn settled at $3.56 1/2, up 1/4 cent.
Wheat: The wheat market closed with decent gains on what looks like fund money short-covering. Weekly export sales were no more than OK at 344,300 MT for delivery in marketing year 2015/16 - down 11 percent from the previous week, but up 42 percent from the prior 4-week average. There were also sales of 66,300 MT for new crop. Weekly exports of of 388,000 MT were up 69 percent from the previous week and 32 percent from the prior 4-week average, which highlights how poor things have been lately. The FAO cut 4 MMT off their global 2015/16 wheat production estimate, taking that down to 733 MMT (USDA: 736 MMT). The reduction was mostly because of cuts in India and Iran, they said. They have ending stocks at 205 MMT (USDA: 239 MMT). May 16 CBOT Wheat settled at $4.59 3/4, up 9 1/2 cents; May 16 KCBT Wheat settled at $4.66, up 11 cents; May 16 MGEX Wheat settled at $4.98, up 9 1/2 cents.