CBOT Closing Comments


Corn futures closed higher but did come back down off of highs posted earlier which were near 20 cents higher at one point. Ethanol giant VeraSun announced they will file for chapter 11 bankruptcy over the weekend but rumours of this has existed for quite some time and played little in trade. USDA reported export inspections of only 17.245 million bushels which was below trade estimates of 25-29 MB. Start of the month positioning and long term shorts maybe electing to cover positions. Weather has been favoruable for corn harvest but reports of wet corn still in the field was backed by USDA's report this afternoon when they indicated that only 55% of the crop was harvested, that is better than the week prior of only 39% but lags the 5 year average of 79%. Dec +1 at 4.03.


Soybeans finished only pennies higher at the close but were also about 20 cents higher at one point during trade. USDA reported better than expected inspections of 49.399 million bushels, trade estimates were 35 -40 MB. Deliveries posted against the Nov bean contract were 712. Although corn harvest maybe sluggish for last week bean harvest has almost caught up to the 5 year average, Monday afternoon USDA indicated that 86% was harvested and the five year pace is 89% complete. Crude oil is currently down $3.55 to $64 per barrel and dollar has pushed .42 points higher residing at 86 points roughly. Nov +3 at 9.28; Dec Meal +2.20 at 275.20; Dec BO +1.14 at 34.74.


Wheat futures did sustain their rally unlike corn and soybeans. Futures traded higher at the three different exchanges throughout the day and were lead by CHI in the nearby Dec contract. Taiwan issued a tender for 52,850 metric tonnes of US milling wheat but a slow down in exports has been noted for the new marketing year. USDA reported 13.243 MB for export inspections and was below trade estimates of around 20 MB, USDA also stated that winter wheat planting was 90% complete with 76% emerged both lag the 5 year average by 2 percentage points. Wheat futures rallied despite the constant of bearish fundamentals, record world wheat crop of 680 MMT slowing of economies and possible recessions around the globe. Dec CHI +25 at 5.62; KC +24 at 5.97; MLPS +17 at 6.65.