CBOT Closing Comments

CBOT futures closed higher Wednesday on a technical bounce from recent steep losses although the downwards trend remains firmly in place traders said.

December wheat futures contract settled up 35 3/4 cents, at $7.25 3/4 per bushel. Earlier, the contract dipped to $6.86, matching the lowest price for front-month wheat since August 2007.

Wheat traders shrugged off bearish news that Egypt bypassed U.S. grain at its latest tender and instead bought 205,000 tonnes of Russian and Ukrainian wheat.

The market was due for a rebound after pressure from rising global wheat supplies pushed the December contract down roughly 25 percent in less than a month, from its August 21 high of $9.59 1/2 a bushel.

CBOT corn futures for December delivery settled up 21 3/4 cents at $5.54 a bushel.

Soybeans for November delivery ended up 15 cents at $11.39 per bushel.

Traders described the bounce as "nothing to get excited about, we've come a long way down, it was just one of those things," one said.

Although the Fed appear to have come to the aid of AIG it is worth noting that they did so very reluctantly. Lehman was allowed to go to the wall. Bear Sterns got it right, if you're gonna go, be the first to go, that way you're more likely to get help.

How many more bullets are the Fed prepared to bite?

It seems very strange to talk about these things. Just a few years ago, the price of crude and the state of US investment banks & the mortgage market. What did that have to do with wheat or soybeans????

Nothing then & everything now it seems. Alt-A, what's that a keyboard shortcut? Fannie & Freddie, a well-known music hall act?