CBOT Closing Comments


January soybean futures closed at USD10.35, up 8 cents; December soymeal futures at USD314.50, up USD1.40; December soy oil futures at 39.22 cents, up 0.13 points. Demand remains robust for US soybeans ahead of harvesting in South America. Private exporters report sales of 232,000 MT soybeans to China Friday, and the US has shipped a record 9.6 MMT to China so far this year. Dec and Jan imports could be 4-4.5 MMT each, analysts say. El Nino related rains appear to have arrived just in time for plantings in Argentina, but if anything there is already too much rain in Southern Brazil.


December corn futures closed at USD3.89 ¼, up 12 cents, and March corn futures at USD4.04 ½, up 11 ½ cents. In the US 12% of the crop was still in the fields as of last Sunday. It is not expected that the harvest will have moved on greatly this week as heavy snow, sleet, rain and strong winds have all battered what's left standing. Taiwan purchased 60,000 tonnes of US corn overnight. Corn planting in Argentina is 80% done, sowings are seen sharply lower at 1.875 million hectares according to the Buenos Aires Grain Exchange, as farmers there jump on the soybean bandwagon. That's around 600,000 ha or 24% down on last year.


December CBOT wheat futures closed at USD5.19 ¼, up 1 ½ cents; December KCBT wheat futures at USD5.17 ¼, up 2 ¼ cents; December MGEX wheat futures at USD5.27 ½, down 2 ½ cents. The USDA this week raised world production and lower consumption, leaving us with a 2.6 MMT increase in world ending stocks to 190.9 MMT. "After several years of tight world wheat supplies, stocks are rebuilding on the back of consecutive bumper harvests," they said. The harvest in Argentina is around a quarter done, with final production generally seen at around 7-7.5 MMT, the lowest since the late 1960's.