CBOT Closing Comments

Corn

March corn futures finished lower this session. December contracts also finished lower. Higher crude oil futures and a lower US dollar index for the day gave support to corn. This morning the USDA released its weekly export sales report for the week ending February 19. Net sales of US corn exports were near 449,000 metric tons, a 66% decrease from the previous week. This was well below analysts’ estimates. During this morning’s Agricultural Outlook Forum, the USDA forecasted 86 million acres for the 2009 US corn plantings, an increase from 2008 of 85.99 million. Analysts’ expected a reduction greater than what was announced. These two USDA releases provided some pressure. Cash corn bids were firm for the day with light farmer selling around the Midwest. March corn finished at $3.62, down 1 ¾ cents; December corn finished at $4.02 ¼, down 1 ½ cents.

Soybeans

March soy complex closed lower this session, while November soybean contracts closed unchanged. Friday is the first notice day for delivery for March corn future contracts. Higher crude oil futures and a lower US dollar index for the day gave support to the soy complex. This morning the USDA released its weekly export sales report for the week ending February 19. Net sales of US soybean exports were near 339,000 metric tons, a 69% decrease from the previous week. This was below analysts’ estimates. During this morning’s Agricultural Outlook Forum, the USDA forecasts the 2009 US soybean plantings at 77 million acres, an increase from 2008 of 75.7 million. Analysts’ expected an increase of 2 to 3 million. These two USDA releases weighed on soy. This morning the US Census released its January 2009 crush report. January soybean crush was 145 million bushels, which was slightly below analysts’ estimates. Spillover from March soybean contracts gave pressure to soy oil and soy meal. Cash soybean bids were firm for the day with light farmer selling around the Midwest. March soybeans closed at $8.69 ¼, down 8 ¾ cents; November soybeans closed at $8.38, unchanged.

Wheat

March wheat futures in all three grain exchanges settled lower for the day. A lower US dollar index during wheat trading gave support to wheat. This morning the USDA released its weekly export sales for the week ending February 19. Net US wheat sales were 465,000 metric tons, a 7.4% increase from the previous week. This was well above analysts’ estimates and gave further support to wheat futures. Also this morning the USDA at its Agricultural Outlook Forum forecasted 2009 US wheat plantings at 58 million acres, a reduction from 2008 of 63 million. Analysts’ expected a reduction of acreage and this announcement gave mild support to wheat futures. Updated weather forecast for HRW wheat crops areas of the southern Plains called for limited chances for rain in the next week and a half. Spillover pressure from soy and corn weighed on wheat. March CBOT wheat settled at $5.14, down 10 ¾ cents.