CBOT Closing Comments

Soybeans

Soybeans finished sharply lower, closing below $9/bushel for the first time since March. November beans finished the day at $8.85, down 33 cents whilst October soymeal closed at $272.00, down $12.70. Informa Economics said that US soybean production this season would total a record 3.383 billion bushels, with an average yield of 44 bushels per acre. The numbers are slightly higher than FCStone's estimates earlier in the week. They are also well above the USDA's September prediction of 3.245 billion bushels with an average yield of 42.3 bushels to the acre. Brazil will produce a record 63.4 MMT of soybeans in 2009/10, according to Abiove. That's 1.4 MMT more than the USDA's September estimate and an 11% increase on last season.

Corn

December corn closed at $3.33 ½, down 7 cents. Spillover weakness from soybeans put corn under pressure. Informa said that US corn production, as with soybeans, will be set an all-time record of 13.127 billion bushels with an average yield of 164.7. Again, as with soybeans, both numbers are slightly higher than FCStone's estimates earlier in the week and well above the USDA's September figures of 12.954 billion bushels with an average yield of 161.9 bushels to the acre.

Wheat

December wheat closed at $4.41 ¼, down 11 ½ cents. Weakness in soybeans weighed on wheat, driving prices to close at or near contract lows. Stats Canada increased their Canadian wheat production estimate by almost 1 MMT from last month to 24.581 MMT. The US spring wheat harvest is just about finished and winter wheat plantings are in line with average with a little over a third of the crop planted.