Benson Quinn Commodities Inc.

Minneapolis, MN

Soy Complex May 23, 2011

Review: Beans ended the day flat/lower as outside money Settlements:

flow weighed on the Ag complex while weather woes and tight Close Change High Low
supplies offered support. The main story of the day was the SN11 1373 ¾ -6 ½ 1393 1366
outside markets with EU debt woes triggering a “risk off” day SQ11 1367 ¼ -4 ½ 1385 ¾ 1359
as funds moved back to the safe haven of the US dollar which SX11 1350 ¾ +¼ 1363 1336 ½
surged to 2-month highs. US weather woes and unfavorable SX12 1309 ¼ -¼ 1315 ½ 1297
forecasts for the week offered support in the overnight and SMN11 358.80 -1.80 364.80 357.20
uncovered buying interest on early morning break but the end BON11 57.22 -0.24 57.94 56.90
of day fund selling pulled the soy complex off higher trade for RSX11 584.50 NA NA NA
mostly lower settlements.
The overnight session started on firmer footing as Volume/Open Interest (# of Contracts):
weather woes and heavy weekend rains lifted corn to new highs Vol Elec Vol Pit O/I Change
for the move but as outside markets reversed lower on weaker Total 115,820 10,651 553,075 +3,128
Euro/stronger US dollar, grains and beans gave back early SN11 77,479 8,227 85,706 +1,890
gains ending the session in the red. The day session opened
SQ11 7,493 458 24,302 +240
strong but the early round of buying was not enough to
SX11 23,410 1,373 198,585 -5
maintain upward momentum and the Ag complex drifted back
lower in step with weaker outside markets. Mid-day weather
Technicals:
updates brought a fresh round of grain and soybean buying Support Resist 20-Day MA 50-Day MA
interest with rain amounts increased across central/east
SN11 1352 ¼ 1399 ¼ 1356 ¾ 1362 ¼
central Midwest from Thurs to Sat. Once again, weakness
outside market prevailed though as beans settled mostly lower SX11 1331 1370 ¼ 1338 ¼ 1345 ¼
albeit better than last trades on the screen would indicate. July
USDA Weekly Export Data:
futures traded an inside day closing down 6 ½-cents at $13.73
Date Trade Est. Actual
¾. November futures settled with nominal gain of ½-cent as
pre-positioning ahead of the fund roll weighed on the spreads Inspect (Mil. Bus.) 5/23/11 5-10 7.770
and supported the new crop contract. The July/Nov spread Bean Sales (MT) 5/19/11 200-400 166,200
traded to 32-cent inverse overnight but came in to 23-cents by Meal Sales (MT) 5/19/11 100-200 14,200
end of the session. The products settled lower in tandem with Oil Sales (MT) 5/19/11 5-10 2,600
beans on pressure from outside markets. Allied Asian markets
were mixed in overnight trade. Malaysian palm oil futures River Markets:
settled lower as sentiment in broad markets turned negative. Mo CIF Chg St. Paul Chg Savage Chg
Chinese Dalian futures settled higher on early strength in May +75N --- -39N --- NA --
counterpart CBOT futures on weather woes. Jun +75N --- -37N --- NA --
Soybean planting progress came in at the low end of
expectations at 41% complete compared to 51% last year and 5- Rail Markets:
year average. Granted beans still have lots of time on the Mo PNW Chg Gulf Chg Chgo Chg
calendar to get in the ground, the forecast across the south May +70N --- +77N --- +7N +3
central and northern states were planting is the furthest behind Jun +70N --- +75N --- +10N +2
remains wet through this week. Outlook has rains moving
across the north in the extended outlooks while southern and Processor Markets:
central Midwest look to turn hot and dry in the extended 8 to Mo MKTO Chg Decatur Chg Lincoln Chg
15 day outlooks. OH is 4% planted with corn only 11% complete May -10N --- +19N +2 +18N ---
compared to 54% and 80% average respectively. ND is 12% Jun -8N --- +19N +2 +10N ---
complete compared to 50% average. Other states that are
usually 50% complete by this time that are still lagging are AR, Brazilian Market: (previous day)
IN, MI and MN. 12% of soy crop has emerged compared to 19% Mo Beans Chg Meal Chg Oil Chg
5-year average. Corn planting nationwide is 79% complete also Jun +4/+7 -1/-- -24/-22 -1/-2 -180/-140 --/+10
on the low end of trade expectations. Spring wheat planting are Jul +12/+14 --- -22/-20 +1/-- -180/-150 +10/--
up to 54% complete as planting advance in MN but ND
remains significantly behind normal at 34% complete CBOT Deliverable Stocks (Thou Bus):
compared to 85% average. May 13, 2011 Week Ago Year Ago
Outside markets continue to offer a weaker sentiment All Warehouses All Warehouses All Warehouses
for the night session but if the Ag sector can overcome money Del 3,692 3,560 2,427
Non 1,162 1,141 746
flow, unfavorable weather forecast for next several days and
Total 4,854 4,701 3,173
delayed plantings should offer support for a higher session.
Kim Rugel
Information contained herein is believed reliable. Benson Quinn Commodities, Inc. does not guarantee that such information
Is accurate or complete. Opinions expressed reflect judgment at this date and are subject to change without notice.
BQCI is a wholly owned subsidiary of Archer Daniels Midland Company An Introducing Broker for ADMIS
701 South 4th Avenue, Suite 800, Minneapolis, MN 55415, 1-800-438-7070