CBOT Closing Comments


Corn futures closed sharply lower with the Dec contract closing below $5/bu for the first time since January. Corn continued its downward trend of late on Tuesday, aiding to that trend was a bearish USDA quarterly stocks report which indicated increased corn supply due to curving livestock consumption and slowing of ethanol plants. Funds sold an estimated 7,000 contracts on Tuesday as a result to the bearish news. Late maturing corn should be getting close to black layer, decreasing the chance for a yield loss due to a frost. Higher moisture content in corn fields may delay harvest as farmers elect weather to help dry rather than pay for expensive energy to dry manually. Dec -25c at 4.87.


Soybeans struggled again on Tuesday losing nearly 50 cents in nearby Nov contract and $1.19 per bushel so far this week! Nearby Nov contract fell below $11/bu for the first time since April, and hasn�t closed this low since last December! Funds were net sellers of 5,000 bean contracts, 2,000 meal, and 2,000 bean oil contracts. The financial chaos has spoke volumes in corn, soybeans, and livestock, indicating the panic some investors have, with continued liquidation and new speculation that prices CAN go lower despite some bullish fundamental values. Crude oil gained about half of yesterday's losses being up over $5/barrel but did not give support to corn or beans. Nov -49 at 10.45 Oct Meal -16.30 at 279.40 Oct BO -163 at 44.00.


Wheat futures received some bullish news from USDA quarterly stocks report with a smaller than expected figure giving support to a wheat market that has collapse over the past month. Funds bought an estimated 2,000 CBOT contracts but are still skeptical, record large world crop and financial jitters weigh in. USDA pegged wheat stocks at 1.856 BB which was below that average trade estimate at 1.909 BB, however, '08 production increased 38 million bushels from the August report. Winter Wheat plantings are well underway and are just slightly behind the five year average with 14% being emerged. Wheat does not have expanded trading limits today. Dec CHI +12 at 6.80; KC +7 at 7.12; MLPS +0 at 7.46.