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Posted by Nogger - a legend in his own mind at 22:10 | Categorized as

26/01/11 -- Soybeans

March soybeans settled 11 cents higher at USD13.85 1/2 a bushel; March soymeal added USD1.80 to USD374.40; March soyoil rose 92 points to 56.70. Private exporters announced the sale to China of 60,000 MT of soybeans for 2010/11 delivery and 167,000 MT for 2011/12 delivery. Crude oil firmed, adding outside support and spillover strength from corn and wheat also helped. Argentine weather prospects have improved, but the market is already starting to focus on the so-called US "battle for acres" between corn and beans this spring. Weekly export sales for tomorrow are expected to be 600-800 TMT.

Corn

March corn ended up 13 3/4c at USD6.57 3/4 a bushel; May corn also ended up 13 3/4c at USD6.68 a bushel. A lower dollar, firmer crude oil and strong support for wheat underpinned corn today. Corn production in Argentina is likely to take a hit despite an improved weather outlook. "Heat and moisture stress has worsened in the past 6 weeks in the northern corn provinces. Even though heavy rain is predicted this weekend it would too late to rescue drought-stressed corn in Cordoba," say Martell Crop Projections. Heat is also damaging for corn in the pollination and kernel-filling stages, they add. Weekly export sales for tomorrow are expected to be 600-900 TMT.

Wheat

CBOT March wheat rose 18 1/4c to USD8.56 1/2 a bushel; KCBT March wheat climbed 22 1/2c to USD9.40; MGEX March wheat jumped 21c to USD9.77. Demand from North Africa and the Middle East is the key here. Algeria bought 800,000 MT of optional origin wheat in it's latest tender, bringing their purchases in the past four weeks to a suggested 1.8 MMT. They've also been buying significant quantities of durum wheat on top of that. Assorted other tenders from the same region are also kicking around as buyers look to secure supplies as stocks tighten further. Weekly export sales for tomorrow are expected to be 900 TMT–1.2 MMT.