CBOT Closing Comments
CORN
Corn futures are traded lower with crude oil and fund liquidation the driving force on Wednesday. Crude oil has lost considerable amount of ground after posting highs in mid July around $145/barrel and is now trading its lowest levels since May below $110/barrel. The dollar continues on an uptrend pushing corn and other commodities lower, generally the dollar moves in long term trends and could be bearish to long term exports. Five deliveries were posted against the CBOT September contract. Sep -6 1/2c at 5.46 1/2.
SOYBEANS
Soybeans traded lower, but closed off session lows. Weather is bearish as scattered rain showers are forecast for much of the Corn Belt as a result of Hurricane Gustav. Many oil refineries in the Gulf expect to be back at full capacity by weekend, suggesting damages were little and is pressuring crude oil lower. Follow through selling from Tuesday is also evident. Private production estimates for beans were higher than USDA August projections and is seen bearish as trade was anticipating smaller production numbers. Sep Beans -50 1/2 at 12.51; Meal -11.80 at 353.10; BO -155 at 50.48.
WHEAT
Wheat futures traded mixed Wednesday but ultimately closed higher. Exports were supportive as Egypt bought 292,500 tonnes of US, Canadian, and Ukraine wheat. Weather remains bearish as Australia's crop is catching beneficial rains. Spring wheat is said to be 81% complete up from 61% in the prior week. Open interest fell 6,200 contracts in CBOT on Tuesday; continuation of index funds leaving commodities is weighing in most commodities. Sep +8 at 7.52 1/4c.
Corn futures are traded lower with crude oil and fund liquidation the driving force on Wednesday. Crude oil has lost considerable amount of ground after posting highs in mid July around $145/barrel and is now trading its lowest levels since May below $110/barrel. The dollar continues on an uptrend pushing corn and other commodities lower, generally the dollar moves in long term trends and could be bearish to long term exports. Five deliveries were posted against the CBOT September contract. Sep -6 1/2c at 5.46 1/2.
SOYBEANS
Soybeans traded lower, but closed off session lows. Weather is bearish as scattered rain showers are forecast for much of the Corn Belt as a result of Hurricane Gustav. Many oil refineries in the Gulf expect to be back at full capacity by weekend, suggesting damages were little and is pressuring crude oil lower. Follow through selling from Tuesday is also evident. Private production estimates for beans were higher than USDA August projections and is seen bearish as trade was anticipating smaller production numbers. Sep Beans -50 1/2 at 12.51; Meal -11.80 at 353.10; BO -155 at 50.48.
WHEAT
Wheat futures traded mixed Wednesday but ultimately closed higher. Exports were supportive as Egypt bought 292,500 tonnes of US, Canadian, and Ukraine wheat. Weather remains bearish as Australia's crop is catching beneficial rains. Spring wheat is said to be 81% complete up from 61% in the prior week. Open interest fell 6,200 contracts in CBOT on Tuesday; continuation of index funds leaving commodities is weighing in most commodities. Sep +8 at 7.52 1/4c.
