CBOT Closing Comments
Corn
March corn futures finished higher in today's session, up 4%. Spillover bullish support from soybeans pushed corn futures to a strong finish. NYMEX crude oil futures traded higher most of the session, which is supportive to corn and ethanol, but pulled back below $49 per barrel after the close of corn trading. A higher US dollar index, a bearish pressure to corn futures, didn't add any major limit to corn's gains. Much of the buying appeared to be tied to ideas about index fund allocations and position squaring prior to Monday's raft of USDA reports. March corn finished at $4.27 1/2, up 16 1/4 cents; December corn finished at $4.71 1/4 , up 16 cents.
Soybeans
Soy complex futures closed higher this session, and rallied to 3-month highs. A firming US dollar didn't add any major bearish pressure to limit soy complex futures' gains, but higher crude oil trading most of the session provided enough bullish support to soy oil. Strong Chinese demand for US soy exports proven by the announced expectation for China this week to purchase up to 800,000 tonnes of US soy which will double its recent weekly purchase, provides additional bullish support. Ongoing drier weather in Brazil and Argentina key crop areas continues to drive yield concerns. Informa Economics release their crop estimates earlier today, where the only major item to note was that they lowered Brazilian soybean production for 2009 by 1 MMT to 59 MMT. Argentine production was left unchanged at 51.7 MMT. This is friendly to US soybean exports because Brazil is the world's second largest producer of soybeans and the smaller production could mean fewer exports unless Brazil draws down its considerable carryover stocks. Soy meal and soy oil received the bullish push from soybeans and from fund buying to close higher on the day. Meal was held back a bit by some oil/meal spread trades. January soybean closed at $10.14 1/4, up 30 1/2 cents; January soy meal closed at $300.30, up $1.60; January soy oil closed at $37.05, up $2.15
Wheat
March wheat futures in Chicago, Kansas City, and Minneapolis settled higher after today's session, rallying to a 3-month high. Spillover bullish support from soybeans and strength from the stock market pushed wheat to rally. The US is still not competitive in most of the wheat tenders, but that doesn't seem to matter. Running out the short sellers is the name of the game. A firming US Dollar Index provided some bearish limitations to wheat futures' gains. Trade estimates for Monday's winter wheat report appear to be running 2 to 3 million acres below last year, and perhaps even lower. The Argentine government has suggested that they may once again cut off wheat exports due to this year's low production. This could force Brazil into the open market to fulfil it's import requirements which could be good news for the US. March CBOT wheat settled at $6.43 1/2, up 26 3/4 cents; March KCBT wheat settled at $6.70, up 27 3/4 cents; March MGEX wheat settled at $6.84 1/2, up 27 1/4 cents.
March corn futures finished higher in today's session, up 4%. Spillover bullish support from soybeans pushed corn futures to a strong finish. NYMEX crude oil futures traded higher most of the session, which is supportive to corn and ethanol, but pulled back below $49 per barrel after the close of corn trading. A higher US dollar index, a bearish pressure to corn futures, didn't add any major limit to corn's gains. Much of the buying appeared to be tied to ideas about index fund allocations and position squaring prior to Monday's raft of USDA reports. March corn finished at $4.27 1/2, up 16 1/4 cents; December corn finished at $4.71 1/4 , up 16 cents.
Soybeans
Soy complex futures closed higher this session, and rallied to 3-month highs. A firming US dollar didn't add any major bearish pressure to limit soy complex futures' gains, but higher crude oil trading most of the session provided enough bullish support to soy oil. Strong Chinese demand for US soy exports proven by the announced expectation for China this week to purchase up to 800,000 tonnes of US soy which will double its recent weekly purchase, provides additional bullish support. Ongoing drier weather in Brazil and Argentina key crop areas continues to drive yield concerns. Informa Economics release their crop estimates earlier today, where the only major item to note was that they lowered Brazilian soybean production for 2009 by 1 MMT to 59 MMT. Argentine production was left unchanged at 51.7 MMT. This is friendly to US soybean exports because Brazil is the world's second largest producer of soybeans and the smaller production could mean fewer exports unless Brazil draws down its considerable carryover stocks. Soy meal and soy oil received the bullish push from soybeans and from fund buying to close higher on the day. Meal was held back a bit by some oil/meal spread trades. January soybean closed at $10.14 1/4, up 30 1/2 cents; January soy meal closed at $300.30, up $1.60; January soy oil closed at $37.05, up $2.15
Wheat
March wheat futures in Chicago, Kansas City, and Minneapolis settled higher after today's session, rallying to a 3-month high. Spillover bullish support from soybeans and strength from the stock market pushed wheat to rally. The US is still not competitive in most of the wheat tenders, but that doesn't seem to matter. Running out the short sellers is the name of the game. A firming US Dollar Index provided some bearish limitations to wheat futures' gains. Trade estimates for Monday's winter wheat report appear to be running 2 to 3 million acres below last year, and perhaps even lower. The Argentine government has suggested that they may once again cut off wheat exports due to this year's low production. This could force Brazil into the open market to fulfil it's import requirements which could be good news for the US. March CBOT wheat settled at $6.43 1/2, up 26 3/4 cents; March KCBT wheat settled at $6.70, up 27 3/4 cents; March MGEX wheat settled at $6.84 1/2, up 27 1/4 cents.