CBOT Closing Comments
Soybeans
July soybeans closed at $12.18 1/2, up 34 1/2 cents, comfortably breaking through the key $12/bushel mark and staying there throughout the session. Fund buying appeared to be a feature today, with "new money" coming in on the long side as we start the new month. China have apparently cancelled "two or three" cargoes, according to the rumour mill. Why would they want to do that with prices at their highest since Sept. 26? Other rumours suggest that China will continue to aggressively build strategic reserves of soybeans. This week's export sales report will be interesting to confirm or deny these reports.
Wheat
July CBOT wheat closed at $6.74 1/2, up 37 1/4 cents, closing just short of an eight month high of $6.76 set earlier in the session. Stunningly bad yields are being reported on early cut wheat in Texas with some fields producing just 10 bushels/acre, according to media reports. In addition to that a weekend freeze in Canada that spread into northern Minnesota and northern North Dakota won't have done any help either. Firmer crude oil and a sharply higher Wall Street also added some support to wheat today.
Corn
July corn ended up 9 1/2 cents at $4.45 3/4 per bushel. Corn got propelled higher by firmer crude and equities, spillover strength from wheat and beans and continued delays to US plantings. Spec money is also coming back in for corn, pushing prices higher, with funds buying an estimated 8,000 contracts as the market surged into the close. Continued wet weather in the Midwest is estimated to push anywhere from 1-3 million acres out of corn and into beans this year.
July soybeans closed at $12.18 1/2, up 34 1/2 cents, comfortably breaking through the key $12/bushel mark and staying there throughout the session. Fund buying appeared to be a feature today, with "new money" coming in on the long side as we start the new month. China have apparently cancelled "two or three" cargoes, according to the rumour mill. Why would they want to do that with prices at their highest since Sept. 26? Other rumours suggest that China will continue to aggressively build strategic reserves of soybeans. This week's export sales report will be interesting to confirm or deny these reports.
Wheat
July CBOT wheat closed at $6.74 1/2, up 37 1/4 cents, closing just short of an eight month high of $6.76 set earlier in the session. Stunningly bad yields are being reported on early cut wheat in Texas with some fields producing just 10 bushels/acre, according to media reports. In addition to that a weekend freeze in Canada that spread into northern Minnesota and northern North Dakota won't have done any help either. Firmer crude oil and a sharply higher Wall Street also added some support to wheat today.
Corn
July corn ended up 9 1/2 cents at $4.45 3/4 per bushel. Corn got propelled higher by firmer crude and equities, spillover strength from wheat and beans and continued delays to US plantings. Spec money is also coming back in for corn, pushing prices higher, with funds buying an estimated 8,000 contracts as the market surged into the close. Continued wet weather in the Midwest is estimated to push anywhere from 1-3 million acres out of corn and into beans this year.