CBOT Closing Comments
Corn
Corn futures struggled on Tuesday after crude oil dropped over $5 to finish roughly $110/barell. Bearish weather forecasts of rain over the Corn Belt also weighed in corn, as most regions will need some moisture to fulfill kernels. Strength in the US dollar index was also seen bearish as it hovers around the 78 level. Transportation issues arise in the Mississippi delta from flooding and wind damages caused by Hurricane Gustav. Funds sold an estimated 6,000 contracts. USDA export inspections for last week were 33.099 million bushels and were within the trade guess. Deliveries against the September contract totaled 202. USDA decreased corn rating to 61% good/excellent down 3% from last week but up 2 points from a year ago. Sep -15c at 5.53/bushel.
Soybeans
Soybeans opened near limit down but found strength as buyers were willing to buy at those levels. Large decreases in crude oil and strength in the dollar ignited selling in the soy complex. Funds were sellers of an estimated 3,000 bean contracts, 1,000 meal contracts, and 2,000 bean oil contracts. USDA inspected 7.429 million bushels of beans for export last week; inspections were within the trade estimate range for 5-7 million bushels. Deliveries against the September contract totaled only three. USDA lowered the condition rating for beans by 4 points to settle at 57% good/excellent, but is 1 point higher than the previous year at the same time. Sep -30c at 13.04; Meal -2.50 at 364.90; BO -137 at 52.03.
Wheat
Wheat futures were held to their firm losses unlike corn and soybeans which backed off of their aggressive selling pressure. Funds sold an estimated 4,500 CBOT contracts. Fund liquidations and anticipation of a record size global crop weighed in on prices. Australia received beneficial rains for the second weekend in a row boosting yield potential. USDA inspections last week for wheat exports totaled 30.152 million bushels; exports were above the trade estimates of 22-26 million bushels. Spring wheat harvest is delayed by rains and cool weather. CHI -35 at 7.44; KC -26 at 7.92; MPLS -37 at 8.24.
Corn futures struggled on Tuesday after crude oil dropped over $5 to finish roughly $110/barell. Bearish weather forecasts of rain over the Corn Belt also weighed in corn, as most regions will need some moisture to fulfill kernels. Strength in the US dollar index was also seen bearish as it hovers around the 78 level. Transportation issues arise in the Mississippi delta from flooding and wind damages caused by Hurricane Gustav. Funds sold an estimated 6,000 contracts. USDA export inspections for last week were 33.099 million bushels and were within the trade guess. Deliveries against the September contract totaled 202. USDA decreased corn rating to 61% good/excellent down 3% from last week but up 2 points from a year ago. Sep -15c at 5.53/bushel.
Soybeans
Soybeans opened near limit down but found strength as buyers were willing to buy at those levels. Large decreases in crude oil and strength in the dollar ignited selling in the soy complex. Funds were sellers of an estimated 3,000 bean contracts, 1,000 meal contracts, and 2,000 bean oil contracts. USDA inspected 7.429 million bushels of beans for export last week; inspections were within the trade estimate range for 5-7 million bushels. Deliveries against the September contract totaled only three. USDA lowered the condition rating for beans by 4 points to settle at 57% good/excellent, but is 1 point higher than the previous year at the same time. Sep -30c at 13.04; Meal -2.50 at 364.90; BO -137 at 52.03.
Wheat
Wheat futures were held to their firm losses unlike corn and soybeans which backed off of their aggressive selling pressure. Funds sold an estimated 4,500 CBOT contracts. Fund liquidations and anticipation of a record size global crop weighed in on prices. Australia received beneficial rains for the second weekend in a row boosting yield potential. USDA inspections last week for wheat exports totaled 30.152 million bushels; exports were above the trade estimates of 22-26 million bushels. Spring wheat harvest is delayed by rains and cool weather. CHI -35 at 7.44; KC -26 at 7.92; MPLS -37 at 8.24.
