CBOT Closing Comments
CORN
Corn futures closed lower Friday as outside markets weighed in on a majority of the grains. December corn fell 11 cents to settle at $6.06 1/2 a bushel. Corn fell early as crude oil retreated from Thursday's highs, the dollar firmed on Friday both are viewed bearishly towards grain commodities. Throughout the Midwest and Corn Belt there are dry pockets developing, corn will need to receive plentiful rains to finish filling ears to the fullest in those areas. Scattered rains are in the forecast in much of the Corn Belt region but rain may be on the light side.
SOY
Soybeans futures fell victim to pull backs in crude oil futures and lower CBT corn and wheat. Crude oil declined over $6/barrel, marking the largest single day move since 2004. The trade pushed aside private tour estimates of bean production that was marked at 2.93 bbu slightly below USDA's August numbers. Funds were sellers of 2,000 contracts pressuring soybeans, the dollar rebounded from lower levels for the past two day, and both added downward weight to beans. Like corn, beans need at least one last sufficient rain to insure yields aren't damaged by lack of moisture. US beans are competing with cheaper Argentinean beans as they continue to export beans world wide after the several month strike. Sep beans closed -20 at $13.21 Meal +$2.60 at $360.30 Oil -141 at 54.15 cents/lb.
WHEAT
Wheat futures closed sharply lower at the close Friday on spillover selling pressure from soybeans and corn. Bearish fundamentals are being ignored for the most part; expectations of a large world crop remain. The US is the world's largest exporter of wheat, a cheaper dollar is aiding stellar exports and especially to Iran who has been a major importer at the start of new marketing year. Canada's wheat crop is said to be almost 27% larger than a year ago. Elevator basis remains extremely wide as there appears to be enough supply nationally. Ukraine has completed harvest and reporting a crop of 26.5 million tonnes, up from 14 MT a year ago. Chicago Board of Trade December wheat fell 31 3/4 cents to $8.90 1/2 per bushel.
Corn futures closed lower Friday as outside markets weighed in on a majority of the grains. December corn fell 11 cents to settle at $6.06 1/2 a bushel. Corn fell early as crude oil retreated from Thursday's highs, the dollar firmed on Friday both are viewed bearishly towards grain commodities. Throughout the Midwest and Corn Belt there are dry pockets developing, corn will need to receive plentiful rains to finish filling ears to the fullest in those areas. Scattered rains are in the forecast in much of the Corn Belt region but rain may be on the light side.
SOY
Soybeans futures fell victim to pull backs in crude oil futures and lower CBT corn and wheat. Crude oil declined over $6/barrel, marking the largest single day move since 2004. The trade pushed aside private tour estimates of bean production that was marked at 2.93 bbu slightly below USDA's August numbers. Funds were sellers of 2,000 contracts pressuring soybeans, the dollar rebounded from lower levels for the past two day, and both added downward weight to beans. Like corn, beans need at least one last sufficient rain to insure yields aren't damaged by lack of moisture. US beans are competing with cheaper Argentinean beans as they continue to export beans world wide after the several month strike. Sep beans closed -20 at $13.21 Meal +$2.60 at $360.30 Oil -141 at 54.15 cents/lb.
WHEAT
Wheat futures closed sharply lower at the close Friday on spillover selling pressure from soybeans and corn. Bearish fundamentals are being ignored for the most part; expectations of a large world crop remain. The US is the world's largest exporter of wheat, a cheaper dollar is aiding stellar exports and especially to Iran who has been a major importer at the start of new marketing year. Canada's wheat crop is said to be almost 27% larger than a year ago. Elevator basis remains extremely wide as there appears to be enough supply nationally. Ukraine has completed harvest and reporting a crop of 26.5 million tonnes, up from 14 MT a year ago. Chicago Board of Trade December wheat fell 31 3/4 cents to $8.90 1/2 per bushel.
