Soycomplex: Aug 12 Soybeans closed at USD17.25 3/4, up 41 1/2 cents; Nov 12 Soybeans closed at USD16.43 1/2, up 41 3/4 cents; Aug 12 Soybean Meal closed at USD546.30, up USD18.60; Aug 12 Soybean Oil closed at 52.57, up 53 points. Beans began the week sharply higher after weekend US rains disappointed and the forecast turned warmer and drier for the week ahead. Meanwhile old crop exports keep on going, tightening the 2011/12 balance sheet.
The USDA weekly export inspections report came in at 15.498 million bu, more than double from the same week a year ago. Funds bought an estimated net 12,000 soybean contracts on the day.
The USDA reported good/excellent soybeans at 29%, down two points on a week ago.
Corn: Sep 12 Corn closed at USD8.20, up 21 1/2 cents; Dec 12 Corn closed at USD8.14, up 20 3/4 cents; Funds were said to have been net buyers of around 16,000 corn contracts on the day following another disappointing weather weekend. The forecast for the week ahead currently offers little in the way of optimism.
"Sizzling hot temperatures occurred again last week in the United States heartland. July temperatures may turn out to be the hottest since 1955, based on preliminary data. Extreme heat has been present for 5 consecutive weeks, coinciding with the critical pollination period in corn. Damage to the corn yield will be irreversible, since kernels not successfully fertilized would never develop into grain. The USDA cut good/excellent crop ratings by two percentage points to 24%.
Wheat: Sep 12 CBOT Wheat closed at USD9.14 1/2, up 16 1/2 cents; Sep 12 KCBT Wheat closed at USD9.14 1/2, up 8 1/2 cents; Sep 12 MGEX Wheat closed at USD9.75, up 3 cents. Funds were said to have been net buyers of around 3,000 Chicago wheat contracts on the day. Ideas that sharply lower Russian wheat production this year is unlikely to see them aggressive in the export marketplace for very long this season are supportive. Quality concerns over European output too may help US wheat regain some market share into the north African market it has been locked out of for 12 months or more. Egypt are expected to restart tendering for wheat next month.
The USD reported spring wheat good/excellent crop conditions at 63%, up 3 points from last week. Winter wheat harvesting is grinding along slowly at 85% done after rapid early progress.