CBOT Closing Comments


Corn futures traded sharply lower on another red� day across most commodity boards. It was estimated that Index funds were net sellers of 7,000 CBOT contracts Wednesday. Pressure from outside markets weighed in on most commodities, with bearish economic outlooks lingering. The Dow Jones was about 300 points lower when grain trading and most commodities closed, but dived further with losses exceeding 700 points at the close. Crude oil is currently about $5 lower at $73/barrel, which is at the lowest price level since August of 2007. Wet weather is limiting harvest in some regions throughout the Corn Belt but weather should clear up ahead of the weekend and allow harvest to carry on. USDA pegged corn harvest 21% complete yesterday afternoon. Dec -23 c at 3.88.


Soybeans finished Wednesday with steep losses but backed off of lows posted earlier in the day. Funds were quoted selling 4,000 bean contracts, 1,000 meal, and 3,000 bean oil contracts. Soybeans continue on a downward trend and may continue that way until stability is established in the financial sector. Rains are also delaying soybean harvest thus far in the week, but with weather permitting bean harvest should pick back up this weekend. Basis remains steady with a sufficient volume of beans in the supply chain. Nov -38 at 8.58; Dec Meal -3.00 at 244.50; Dec BO -2.47 at 35.53.


Wheat futures closed lower when they were unable to shrug off pressure from other grains and economic conditions. Japan has resumed their normal weekly buying after reportedly purchasing 71,000 MT of US wheat. Wheat futures continue to be pressured by the fact that the world should harvest a record crop for 2008/09. USDA reported winter wheat plantings 73% complete, on par with the 5 year average. Winter wheat emerging is also ahead of last years pace at 46% vs. 39%. Funds were net sellers of an estimated 3,000 CBOT contracts. Dec CHI -17 c at 5.55; KC -23 at 5.90; MLPS -15 c at 6.38.