CBOT Closing Comments


Corn futures closed slightly lower on the last trading day in August. Corn backed off of highs earlier in the day and was pulled lower on declines in crude oil and squaring of positions. Almost all commodities traded quietly ahead of a long weekend filled with a lot of uncertainty. Concerns of TS Gustav damaging oil rigs and/or damaging ports along the delta and Mississippi River pushed prices lower. Those damaging concerns could result in delays in exports or dump beneficial rains in Midwest and Corn Belt regions. Due to the uncertainty left traders taking cautious positions ahead of the holiday. Liquidation of contracts was present yesterday, open interest was down around 20,000 contracts for the second time this week. Sep -1c at $5.68.


Soybeans were flat on quite trade Friday. Soybeans are vulnerable to weather, pods are filling and needing additional moisture in most regions and the plants needs warm days to mature ahead of a damaging frost. Cash markets firmed and are adding support to beans while crude oil slumps pressuring the soy complex. The US dollar index found strength also weighing in on prices. Soybean stocks are pipeline tight and any disruption in expectations of production could push prices in either direction. Sep -1/2c at 13.32; Meal -12 at 367.40; BO +6 at 53.40.


Wheat futures were mixed on Friday, CBOT and KC posted losses while MPLS marked gains in nearby contracts. Funds were sellers of 2,000 CBT contracts, wheat continues to be pressured by the lingering fact of a huge world crop; Australia and Argentina received beneficial rains this week insuring their crops. CBOT wheat had 3,561 contracts posting delivery notices at CBOT. That was significantly higher than trade estimates, KC deliveries of 109 lots, and MPLS issued 215 contracts. The large amount of deliveries was triggered by weakness in basis. CHI -9c at 7.79; KC -6c at 8.18 ; MPLS +5c at 8.61.