CBOT Closing Comments: Limit Up Most Contracts

Corn futures closed up the 30 cent limit in all contracts from Sep 08-Sep 09. Stronger outside markets such as crude oil helped the rally in corn. Corn was not the only grain seeing sharp price gains as wheat and soybeans enjoyed limit gains up, broad commodity buying and long term short covering was believed to add support. Funds were large buyers, buying an estimated 12,000 contracts.

Soybeans futures were 70c limit up in all trading contracts besides August. Soybeans followed the rallies in crude oil and other grains. Soy products also seen limit gains in most months. Beans have bullish fundamentals as US ending stocks remain tight. Soybeans are oversold and technical buying is helping support soybeans. Funds bought an estimated 6,000 contracts.

Wheat futures surged as they responded to limit gains in row crops. At all three trading exchanges seen contracts limit up, although most of the action was not in nearby contracts. Funds bought 7,000 contracts at CBOT. Wheat remains the most volatile grain market of late, and has some speculators entering cautiously. Wheat charts also appear technically oversold, giving bulls the edge over the bears on Wednesday. Concerns about quality of foreign wheat crop production have sparked some global buying in the US helping to support wheat prices. Spring wheat crop conditions continue to be weighed on by unfavorable hot/dry weather. Chicago Sept wheat closed +60c.