CBOT Closing Comments
Corn
Corn futures finished on a positive note with all contracts posting marginal gains. Funds were net buyers of an estimated 4,000 CBOT contracts. Crude oil rebounded from yesterday's losses and was more than $2 higher for a majority of trade Thursday. Some bottom picking may be occurring also supporting prices. Corn has mixed fundamentals, decreasing demand by exports and some livestock, but some bullish fundamentals are developing; American farmers still have 29% of the corn crop to harvest or roughly 2.2 million acres. Basis is firming as farmers are reluctant to sell at current prices and using the on farm storage. Dec +7 at 3.77.
Soybeans
Soybeans and soybean oil climbed from midday losses and to close higher, but meal was unable to buck selling pressure. Trade was choppy and volatile at times, funds were quoted as being net sellers of 1,000 beans, 1,000 meal, but bought an estimated 1,000 bean oil contracts. The November contract is set to expire Friday, deliveries against Nov were 409. Beans may also be pressured by Wheat/bean spreading. The dollar traded on both side of steady during trade giving no strong momentum to either the bull or bear. Tomorrow USDA will release export sales for last week, the delay is due to Veterans Day Tuesday. Nov +1 at 8.87; Dec Meal -2.40 at 264.00; Dec BO +23 at 32.81.
Wheat
Wheat futures backed off of midday highs to close higher in CHI and KC but MLPS lost ground in the nearby Dec contract Thursday. Funds purchased an estimated 2,000 CBOT wheat contracts. Japan purchased 100,000 metric tonnes of US wheat. Much debate has circulated about the Aussie wheat crop with many analysts lowering total production, but the simple fact that Australia is on tract to producing nearly 45% more than last year still resides. Wheat futures also received some support from technical buyers and traders covering short positions. Dec CHI +5 at 5.38; KC +2 at 5.78; MLPS -6 at 6.46.
Corn futures finished on a positive note with all contracts posting marginal gains. Funds were net buyers of an estimated 4,000 CBOT contracts. Crude oil rebounded from yesterday's losses and was more than $2 higher for a majority of trade Thursday. Some bottom picking may be occurring also supporting prices. Corn has mixed fundamentals, decreasing demand by exports and some livestock, but some bullish fundamentals are developing; American farmers still have 29% of the corn crop to harvest or roughly 2.2 million acres. Basis is firming as farmers are reluctant to sell at current prices and using the on farm storage. Dec +7 at 3.77.
Soybeans
Soybeans and soybean oil climbed from midday losses and to close higher, but meal was unable to buck selling pressure. Trade was choppy and volatile at times, funds were quoted as being net sellers of 1,000 beans, 1,000 meal, but bought an estimated 1,000 bean oil contracts. The November contract is set to expire Friday, deliveries against Nov were 409. Beans may also be pressured by Wheat/bean spreading. The dollar traded on both side of steady during trade giving no strong momentum to either the bull or bear. Tomorrow USDA will release export sales for last week, the delay is due to Veterans Day Tuesday. Nov +1 at 8.87; Dec Meal -2.40 at 264.00; Dec BO +23 at 32.81.
Wheat
Wheat futures backed off of midday highs to close higher in CHI and KC but MLPS lost ground in the nearby Dec contract Thursday. Funds purchased an estimated 2,000 CBOT wheat contracts. Japan purchased 100,000 metric tonnes of US wheat. Much debate has circulated about the Aussie wheat crop with many analysts lowering total production, but the simple fact that Australia is on tract to producing nearly 45% more than last year still resides. Wheat futures also received some support from technical buyers and traders covering short positions. Dec CHI +5 at 5.38; KC +2 at 5.78; MLPS -6 at 6.46.
