CBOT Closing Comments


Corn futures closed higher on Tuesday however most contracts traded lower for most of the day. Funds were buyers of an estimated 2,000 CBOT contracts. Traders kept a close eye on Secretary Paulson and Chairman Bernanke as they answered questions from congress today regarding the Government �bailout�. The dollar rallied on short covering lower at midday on a typical turnaround Tuesday. Crude oil finished softer on the day after impressive gains yesterday. Corn received support late in the day from rallies in wheat futures. Dec +1c at 5.60


Soybeans traded lower throughout the day but closed off of early morning lows. Profit taking from yesterday�s impressive gains weighed in on prices as well as lower crude oil and a higher dollar index. Benign weather also weighed in on soybeans along with weakness in the Brazilian Real. Basis is widening as harvest ramps up, supplying new crop beans into a tight supply chain. Few short term threats of a damaging freeze should benefit late maturing beans. USDA says 44% of the bean crop is dropping leaves, a bit behind the 64% average.. Nov -18 at 11.87 Oct Meal +2.00 at 325.30 Oct BO -181 at 47.74.


Wheat futures received a late advance from some technical buying and some short covering. However wheat did not trade high all day, morning prices were choppy to say the least, on profit taking and shakiness in the US financial sector keeping traders on their toes. USDA released that US has sold 116,000 tonnes for 2008/2009. Winter wheat plantings are lagging a little behind the 5 year average but should have adequate soil moisture to germinate the seed. South Korea bought 22,500 tonnes of US wheat. Argentinean wheat will require additional rains to keep yield potential at average as their crop is shooting heads. Dec CHI +12c at 7.50; KC +7c at 7.81; MLPS +12c at 8.11.