CBOT Closing Comments


Corn futures closed impressively higher as the contracts closed above $4 per bushel but the nearby Dec contract did lose 3 cents for the week. Funds were quoted buying 5,000 CBOT corn contracts with some traders becoming optimistic about the economy. USDA released their delayed export sales report this morning which indicated sales for last week totaling 975,200 MT those sales were higher than the trade guess. The rebound in corn and other grains is also supported by some firmness in crude oil along with short covering allowing prices to bounce higher. Dec +18c at 4.03.


Soybeans also finished the day with sharp gains for the second straight trading session. USDA export sales were 1.028 MMT of soybeans which was well above any trade estimates. Weather has delayed most harvesting throughout the Corn Belt for the past several days. Basis is firming in some areas with farmers not selling any new crop beans as prices have fell dramatically. Soymeal and Soyoil were also higher as they follow beans and crude oil. The dollar is modestly higher still above the 82 point mark. Funds were quoted being net buyers of 3,000 beans, 2,000 meal, and 1,000 bean oil contracts. Nov +27 at 8.94; Dec Meal +5.58 at 258.20; Dec BO +5 at 35.50.


Wheat futures inched higher to post modest gains in nearby contracts for MLPS and CHI but KC lost 8 cents for the week. Wheat futures have been teetering in oversold territory for some time now and were due for a bounce higher. USDA released export sales of 435,600 tonnes for last week which was slightly below trade estimates. Foreign countries are also experiencing hard times with the financial crisis and cost of production may exceed prices. Argentina is benefiting from showers and cooler weather, but Australia is still carrying the burden of drought. Winter wheat plantings benefited from sufficient rains of the past few weeks. Dec CHI +11 at 5.66; KC +9 at 5.97; MLPS + 8 at 6.40.