CBOT Closing Comments


Corn futures closed modestly higher Tuesday. Funds were net buyers of an estimated 5,000 CBOT contracts. Corn futures received an initial boost in prices from USDA when they revised production and ending stocks this morning. Harvested acres were cut by 1 million, down to 78.2, production down 167 million acres and ending stocks down 66 mb. Delays in harvest due to wet cool weather may resume later this week with forecasts of higher temps and mostly dry weather through the weekend. Cash bids continue to be impressive around large end users (ethanol plants) due to harvest delays and lack of farmer selling. Dec +5 at 3.90.


Soybeans were leading the way in the category of volatility. Futures in night trade had gains 60 cents or better and continued that momentum when the opening bell rang but gave those gains back on profit taking and realization of USDA's revisions this morning. USDA cut about half of the acreage increase in Oct. expected harvested acres for beans is now 74.4 million. Harvest continues to lag behind the five year average but was said to be 76% complete Monday. Funds were net sellers of 2,000 bean contracts, 1,000 meal, and 1,000 bean oil contracts. Better weather this week should help improve harvest conditions throughout the week. Nov -14 at 8.78; Dec Meal -9.50 at 266.80; Dec BO +16 at 31.88.


Wheat futures were not influenced by a so called bullish fundamental row crop revisions by USDA this morning and continued on a down trend at the three major exchanges with CHI leading the way. Index funds were noted selling an estimated 3,000 contracts pressuring the market lower. Continued strength in the US Dollar Index has slowed exports which weigh as well as the lingering fact record world crop. US winter wheat planting is 84% complete which is slightly below the five year average but is par for wet weather conditions we have encountered over the past 2 weeks. Taiwan purchased 40,000 metric tonnes of US wheat for milling purposes. Dec CHI -15 at 5.14; KC -11 at 5.53; MLPS -7 at 6.16.