CBOT Closing Comments
CORN
Corn futures closed sharply lower Friday. Commodity prices had a mostly down week as nearby corn futures lost 36 cents since last week. Funds weighed in on prices as they were sellers of an estimated 8,000 contracts. Funds are still liquidating and open interest fell nearly 4,500 contracts on Thursday. Weather remains bearish, rains help finish most crop plants and frost threats are not in the forecast for the next week, both pushed prices lower. USDA released export sales early this morning: 200,200 tonnes for 07/08 and 389,400 for 08/09. 251 deliveries were issued against the September contract. Informa pegged this years crop at 12.406 billion bushels compared to the USDA's August number of 12.288 billion. Sep closed -17c at 5.31/bushel.
SOYBEANS
Soybean futures closed down sharply on spillover selling pressure from other grains and outside markets. Soybeans were off for the week as well, losing $1.56 in nearby September since last Friday. Funds were heavy sellers Friday selling an estimated 8,00-9,000 contracts of beans. Rains in most Corn Belt regions benefited pod filling and is weighing in on prices. South Korea bought 110,000 tonnes for 08/09 delivery. Informa pegged 2008 total production 3.035 billion bushels compared to the USDA's August number of 2.973 billion. Fundamentals may not be trading too much in commodities as large index funds are packing up and taking money off the table. Sep beans closed -54 at 11.80; Meal -14.40 at 341.00; Oil -135 at 48.18c/lb.
WHEAT
Wheat futures lost over 25 cents in nearby September contracts at CBOT, KCBOT, and MGEX. Long Liquidation and technical selling was responsible for the collapse in wheat Friday. Funds sold an estimated 4,000 contracts in CHI. CBOT wheat has extremely wide basis for the last couple of months. Carry in the market has allowed traders to continuously roll contracts holding that basis wide with large supplies. CME Group is now recommending changes to those contracts such as: higher storage rates, increased delivery points and lower vomitoxin levels. The September contract was pressured by large deliveries issued (1,230). Sep CHI -25c at 7.29; KC -27c at 7.73; MPLS -31c at 8.03/bushel.
Corn futures closed sharply lower Friday. Commodity prices had a mostly down week as nearby corn futures lost 36 cents since last week. Funds weighed in on prices as they were sellers of an estimated 8,000 contracts. Funds are still liquidating and open interest fell nearly 4,500 contracts on Thursday. Weather remains bearish, rains help finish most crop plants and frost threats are not in the forecast for the next week, both pushed prices lower. USDA released export sales early this morning: 200,200 tonnes for 07/08 and 389,400 for 08/09. 251 deliveries were issued against the September contract. Informa pegged this years crop at 12.406 billion bushels compared to the USDA's August number of 12.288 billion. Sep closed -17c at 5.31/bushel.
SOYBEANS
Soybean futures closed down sharply on spillover selling pressure from other grains and outside markets. Soybeans were off for the week as well, losing $1.56 in nearby September since last Friday. Funds were heavy sellers Friday selling an estimated 8,00-9,000 contracts of beans. Rains in most Corn Belt regions benefited pod filling and is weighing in on prices. South Korea bought 110,000 tonnes for 08/09 delivery. Informa pegged 2008 total production 3.035 billion bushels compared to the USDA's August number of 2.973 billion. Fundamentals may not be trading too much in commodities as large index funds are packing up and taking money off the table. Sep beans closed -54 at 11.80; Meal -14.40 at 341.00; Oil -135 at 48.18c/lb.
WHEAT
Wheat futures lost over 25 cents in nearby September contracts at CBOT, KCBOT, and MGEX. Long Liquidation and technical selling was responsible for the collapse in wheat Friday. Funds sold an estimated 4,000 contracts in CHI. CBOT wheat has extremely wide basis for the last couple of months. Carry in the market has allowed traders to continuously roll contracts holding that basis wide with large supplies. CME Group is now recommending changes to those contracts such as: higher storage rates, increased delivery points and lower vomitoxin levels. The September contract was pressured by large deliveries issued (1,230). Sep CHI -25c at 7.29; KC -27c at 7.73; MPLS -31c at 8.03/bushel.
