CBOT Closing Comments


Corn futures closed the imposed 30 cent limit up in Dec08 through July09 contracts. Fed Reserve dropped their fund rate by a half point to 1% and should be bullish to commodities as the decrease in the fund interest rate should put pressure on the US dollar. Index funds were net buyers of an estimated 10,000 CBOT contracts. The sharp declines in the dollar index were supportive to exports with Taiwan purchasing 40,000 metric tonnes of US corn. Weather is improving enabling farmers to resume harvest a vulnerable crop. Dec +30 at 4.20.


Soybeans finished Wednesday with strong gains in all contract. Soybean futures were rallied by higher crude oil and weakness in the dollar. Funds were net buyers of 5,000 beans, 2,000 meal, and 3,000 bean oil contracts. Better weather will help farmers harvest their remaining 24% of the bean crop which has been delayed due to unseasonably wet weather. Nearby Nov contract First Notice day for deliveries is this Friday and may create some deliverable opportunities with the wide range and regional basis bids. Nov +58 at 9.37; Dec Meal +16.20 at 283.00; Dec BO +2.45 at 34.33.


Wheat futures shot sharply higher to their 60 cent limit but only briefly and backed off marginally. Wheat was pushed higher by corn and soybean futures as well as outside market influences. Funds bought an estimated 5,000 CBOT contracts adding support. Egypt and Jordan did bypass the US on recent wheat purchases but recent declines in the Dollar index today may create some buying opportunities for abroad customers who have been relatively quite since the dollar has experienced its 10 point move in the last two months. Australia remains dry and in dire need of beneficial rains in most southern regions but Argentina did catch some plentiful rains to relieve some drought pressure. Dec CHI +47 at 5.61; KC +44 at 5.98; MLPS +44 at 6.61.