CBOT Closing Comments
Corn
March corn settled at $3.43 ½, down 7 ¼ cents. We started off with the now sadly familiar economic doom & gloom. A stronger USD and weaker crude added to the bearish tone. When are things ever going to get better? Never, according to the market, we are for sure all going to die a slow & painful death. The Dow index closed at its lowest close since 1997. AIG are back at the begging bowl, but then again they did sponsor Man Utd so bollox to them, they deserve everything they get.
Soybeans
March soybeans closed at $8.48 ½, down 26 cents. As with corn a higher dollar and lower crude did nothing to help beans. Also of course the global economy didn't lend too much support either. China seems to be beginning its usual switch to South America, which frequently happens at this time of year, but under current conditions may provide more of a bearish influence than normal. Even the threat of very serious ramifications from the potential disruptions to trade in Argentina from the "coup" of nationalising the grain trade couldn't support beans today.
Wheat
March CBOT wheat finished at $4.94 ¾, down 15 ¾ cents, largely due to spillover weakness from the other two pits. It is far easier to make out a case for bullishness on wheat than corn or beans. This has been well documented here recently, but factors include sharply lower world production and drought in the US Plains. For now however it seems that the market cannot look further than the global economic meltdown. It may be worth considering at this point that only a twelve months ago the world saw crude oil rising to $200+ and could not see anything other than wheat trading at stupid money. Who knows where we will be a year from now?
March corn settled at $3.43 ½, down 7 ¼ cents. We started off with the now sadly familiar economic doom & gloom. A stronger USD and weaker crude added to the bearish tone. When are things ever going to get better? Never, according to the market, we are for sure all going to die a slow & painful death. The Dow index closed at its lowest close since 1997. AIG are back at the begging bowl, but then again they did sponsor Man Utd so bollox to them, they deserve everything they get.
Soybeans
March soybeans closed at $8.48 ½, down 26 cents. As with corn a higher dollar and lower crude did nothing to help beans. Also of course the global economy didn't lend too much support either. China seems to be beginning its usual switch to South America, which frequently happens at this time of year, but under current conditions may provide more of a bearish influence than normal. Even the threat of very serious ramifications from the potential disruptions to trade in Argentina from the "coup" of nationalising the grain trade couldn't support beans today.
Wheat
March CBOT wheat finished at $4.94 ¾, down 15 ¾ cents, largely due to spillover weakness from the other two pits. It is far easier to make out a case for bullishness on wheat than corn or beans. This has been well documented here recently, but factors include sharply lower world production and drought in the US Plains. For now however it seems that the market cannot look further than the global economic meltdown. It may be worth considering at this point that only a twelve months ago the world saw crude oil rising to $200+ and could not see anything other than wheat trading at stupid money. Who knows where we will be a year from now?