CBOT Closing Comments Fri


Corn futures closed with impressive gains Friday after the release of a bullish USDA report. On Monday trading limits will expand to 45 cents after limit up gains in the Dec '08, May '09, and July '09 contracts. Corn started initially higher after USDA reduced production and was able to sustain and improve those gains as the crude oil and the dollar both collapsed. Even with the reductions in total corn production, this year's crop is still on track to be the 2nd largest on record. South Korea bought 55,000 tonnes of US corn and 225 contracts issued delivery notices against the September contract which expired at 12:00 CDT today. Sep +25c at 5.47/bushel.


Soybeans futures posted double digit gains in most contracts Friday. Some short positions found themselves on the wrong side of the September contract which was in delivery stage and had no trade limits. They got slaughtered with Sep closing up 274c, close to four limit moves! The recent tropical storms and delayed harvest have many end users in a bind that do not have the physical commodity on hand. For that reason cash prices and basis firmed yesterday and today adding to higher futures. Funds were estimated buyers of 3,000 beans, 1,000 meal, and 1,000 bean oil contracts. Soybean and soy product September contracts expired today. Deliveries against the Chicago Bean contract were slim at 76. Sep +274 at 14.90; Meal +.0 at 359.00; BO +15 at 47.15/lb.


Wheat futures closed lower despite impressive rallies in corn and soybeans. USDA is projecting a record large global wheat crop (676.3 MT) and continues to lean on prices. Tunisia bought 92,000 tonnes of US soft durum wheat. South Korea bought 22,700 tonnes of US wheat for their flour mills and US aided Pakistan with 50,000 tonnes of wheat. Funds sold an estimated 3,000 CBOT contracts adding pressure to price. 276 deliveries were posted against the CBOT September contract. KCBT reported 30 retenders and MGE reported 30 retenders. Sep CHI -3c at 7.03; KC -4c at 7.41; MPLS -23c at 7.71/bushel.