CBOT Closing Comments


July soybeans closed at USD9.57 3/4, up 8 1/4 cents; July soymeal at USD287, up USD1.30; July soybean oil at 38.13, up 32 points. Rumours of Chinese soybean purchases from both the US and South America, plus recent heavy rains in the Midwest, supported beans. It seems a little strange that China might be buying beans, as other reports suggest cancellations are more likely given the recent torrid pace of imports. Estimates for tomorrow's weekly export sales report range from 350-550,000 MT.


July corn closed at USD3.56 1/4, up 2 1/2 cents; Dec corn finished at USD3.77 1/4, up 2 1/4 cents. Above normal temperatures in the 6 to 10 forecast should benefit corn production. Weekly export sales estimates for tomorrow range from 600-900,000 MT. Crude oil closed at a six week high, even though the US Energy Dept said that inventories rose 1.7 million barrels last week. There was some talk the the EPA might increase the ethanol mandate any day now from the existing 10% limit to 12-13%.


July CBOT wheat closed at USD4.61 1/4, up 9 1/2 cents; July KCBT wheat was at USD4.90 1/2, up 12 1/4 cents; July MGEX wheat ended at USD5.32 1/4, up 9 1/4 cents. Canadian rains and flooding continue to support the market, sparking short covering. The US has also seen plenty of rain disrupting the winter wheat harvest, although the forecast is now turning hot and dry in the Southern Great Plains. A large tender by Saudi Arabia to buy almost 1 MMT of wheat is seen as a sign that current prices are finally attracting buyers. Trade estimates for tomorrow's weekly export sales report range from 300-350,000 MT.