CBOT Closing Comments
CORN
Corn futures bounced higher after trading choppy for much of the day. The late rally in grains was finally sustained on Wednesday. Funds were net buyers of 5,000 CBOT contracts. However, this is the first successful attempt to rally futures in this week, and may be just aggressive short covering and profit taking after contracts hit 10 month lows. Weather for the most part has been favoUrable, but recent rains have prevented some harvest creating a positive basis bids by some ethanol plants and elevators. USDA will release their monthly production report on Friday reactions will be mixed as many believe few fundamentals have been trading lately. Dec +10 � at 4.27.
SOYBEANS
Soybeans pushed higher Wednesday to post impressive gains despite bearish economic conditions. Funds bought an estimated 4,000 beans, 2,000 meal contracts, and even on the day in the bean oil pit. Crude oil futures were softer but did back away from lows posted earlier in the day, the declines in crude oil and harvest pressure limited gains. Harvest is well underway in many major bean producing states and is supply sufficient supplies of new crop beans to the supply chains. Argentinean farmers remain on strike which is halting exports and should be bullish to US bean exports. Brazil is on track to harvest a record crop of 60 MT plus. Deliveries against the October Bean Oil contract were 605 down from heavier postings earlier in the week, and meal deliveries jumped to 539 contracts against its October contract. Nov +38 at 9.64; Oct Meal +11.80 at 263.70; Oct BO -1 at 39.40.
WHEAT
Wheat futures closed slightly higher at the different exchanges on technical buying. Index funds bought an estimated 2,000 CBOT contracts. Wheat futures have not been ignoring that there is potential for the world as a whole to harvest a record crop which has been pushing prices lower for at least the last 2 months. Rains through the Midwest have plagued harvesting of row crops but has been beneficial to winter wheat. Iran issued a tender for 60,000 tonnes for milling purposes. Brazilian Government is reporting more wheat production in their October report versus their September (5.79 MT vs. 5.4 MT) Dec CHI +4 at 6.08; KC +4 at 6.38; MLPS +8 at 6.74.
Corn futures bounced higher after trading choppy for much of the day. The late rally in grains was finally sustained on Wednesday. Funds were net buyers of 5,000 CBOT contracts. However, this is the first successful attempt to rally futures in this week, and may be just aggressive short covering and profit taking after contracts hit 10 month lows. Weather for the most part has been favoUrable, but recent rains have prevented some harvest creating a positive basis bids by some ethanol plants and elevators. USDA will release their monthly production report on Friday reactions will be mixed as many believe few fundamentals have been trading lately. Dec +10 � at 4.27.
SOYBEANS
Soybeans pushed higher Wednesday to post impressive gains despite bearish economic conditions. Funds bought an estimated 4,000 beans, 2,000 meal contracts, and even on the day in the bean oil pit. Crude oil futures were softer but did back away from lows posted earlier in the day, the declines in crude oil and harvest pressure limited gains. Harvest is well underway in many major bean producing states and is supply sufficient supplies of new crop beans to the supply chains. Argentinean farmers remain on strike which is halting exports and should be bullish to US bean exports. Brazil is on track to harvest a record crop of 60 MT plus. Deliveries against the October Bean Oil contract were 605 down from heavier postings earlier in the week, and meal deliveries jumped to 539 contracts against its October contract. Nov +38 at 9.64; Oct Meal +11.80 at 263.70; Oct BO -1 at 39.40.
WHEAT
Wheat futures closed slightly higher at the different exchanges on technical buying. Index funds bought an estimated 2,000 CBOT contracts. Wheat futures have not been ignoring that there is potential for the world as a whole to harvest a record crop which has been pushing prices lower for at least the last 2 months. Rains through the Midwest have plagued harvesting of row crops but has been beneficial to winter wheat. Iran issued a tender for 60,000 tonnes for milling purposes. Brazilian Government is reporting more wheat production in their October report versus their September (5.79 MT vs. 5.4 MT) Dec CHI +4 at 6.08; KC +4 at 6.38; MLPS +8 at 6.74.