CBOT Closing Comments
Soybeans
August soybeans closed at $10.09 ½, up 33 ½ cents, with November beans following suit at $9.23 ½, also up 33 ½ cents. The entire complex finished the day at the high end of the daily range, with short-covering a feature. Yesterday's steep losses were deemed overdone as the realisation kicked in that China isn't going to find many buyers of state-owned soybeans at $40-50 over the cost of US beans. Old crop stocks remain very tight and the US is still the cheapest shop in town. Whilst US weather is non-threatening it is probably a bit too cool at the moment, and is forecast to stay that way through until the end of the month.
Corn
September corn finished at $3.22 ¼, up 5 ½ cents, December corn closed at $3.31 ½, up 6 ¼ cents. The corn crop continues to make good progress in many areas of the country. As with beans the weather is non-threatening, and the crop looks largely in great shape. With a relatively benign forecast now through until the end of the month, the crop is a fair way already towards being 'made'.
Wheat
September wheat closed t $5.41 ¾, up 8 ½ cents. Large speculative funds remain heavily short of wheat, leaving the market vulnerable to a corrective bounce. More export interest is needed to stimulate the US wheat market, Brazil bought 51,000 MT yesterday finding Argentina with nothing to sell. The US needs to start picking up more of these 'surprise' orders to get the funds covering in some of these shorts. Whilst wet weather may be beneficial to corn and beans, it continues to slow winter wheat harvesting.
August soybeans closed at $10.09 ½, up 33 ½ cents, with November beans following suit at $9.23 ½, also up 33 ½ cents. The entire complex finished the day at the high end of the daily range, with short-covering a feature. Yesterday's steep losses were deemed overdone as the realisation kicked in that China isn't going to find many buyers of state-owned soybeans at $40-50 over the cost of US beans. Old crop stocks remain very tight and the US is still the cheapest shop in town. Whilst US weather is non-threatening it is probably a bit too cool at the moment, and is forecast to stay that way through until the end of the month.
Corn
September corn finished at $3.22 ¼, up 5 ½ cents, December corn closed at $3.31 ½, up 6 ¼ cents. The corn crop continues to make good progress in many areas of the country. As with beans the weather is non-threatening, and the crop looks largely in great shape. With a relatively benign forecast now through until the end of the month, the crop is a fair way already towards being 'made'.
Wheat
September wheat closed t $5.41 ¾, up 8 ½ cents. Large speculative funds remain heavily short of wheat, leaving the market vulnerable to a corrective bounce. More export interest is needed to stimulate the US wheat market, Brazil bought 51,000 MT yesterday finding Argentina with nothing to sell. The US needs to start picking up more of these 'surprise' orders to get the funds covering in some of these shorts. Whilst wet weather may be beneficial to corn and beans, it continues to slow winter wheat harvesting.