CBOT Closing Comments - Monday

CORN

Corn futures closed lower and were unable to hold early morning gains. Wheat tumbled on Monday and pulled corn down with it. Alterations to some forecasts at midday showed more favorable chances of rainfall which weighed in on corn. USDA's export inspections for last week were 30.562 million bushels that is below the trade estimates of 35-41 million bushels. Funds were sellers of estimated 6,000 - 7,000 contracts. USDA reduces corn ratings to 64% good/excellent, down 3 points from last week. Sep closes -6c at $5.80.

SOYBEANS

Soybeans futures followed through on early trading session gains to close strong as drier weather lingers. Those weather concerns are boosting prices as bean development is in the crucial pod filling stage. Funds bought an estimated 2,000 lots Monday. Weather is in the driver's seat as beans are 'made' in August, drier weather could damage yield, which would be bullish as projected ending stocks are already said to be at their pipeline levels. Despite all the concerns about drier weather and the effect it is having, USDA only reduced the good/excellent rating 1% to 61%. Sep +18c at 13.39; Meal +59 at 366.20; BO +37 at 54.52.

WHEAT

Wheat futures witnessed sharp declines at all three major trading exchanges with CHI losing the most in nearby contract. Funds sold 3,000 contracts in CBOT on renewed interest in the projection of a large global crop. Even with many expecting a large crop, importing countries haven't eased on buying as exports remain stout globally. Australia has seen rainfall over the weekend, and there is more in the forecast, which should improve existing wheat crop and continue to pressure futures. USDA export inspections for wheat were 23.734 million bushels and that was surprising as trade estimates were lower at 19-22 million bushels. CHI -25c at 8.40; KC -22c at 8.77; MPLS -23c at 9.14.