CBOT Closing Comments


Corn futures closed modestly higher, with support from crude oil and better than expected export inspections. Private firm Informa Economics estimated 86.8 million acres will be planted in 2009 for corn which is 900,000 acres more than 2008 but was below some trade expectations. USDA reported that 25.02 MB were inspected for exports, which is slightly higher than the prior week. Crude oil initially boosted grain prices but when final bell rang in the grain pits crude oil was lower on the day. USDA backed our theory of little harvest activity last week, only improving 7% from last week to 78% complete. Dec +4 at 3.85.

Soybeans traded as much as 26 cents higher but only closed near 10 cents better. USDA indicated that 36.83 million bushels were inspected for exports last week, which was about 2 mb more than week ending 11/6/08 but was within trade estimates. USDA indicated that soybean harvest was 95% complete still lagging last year and the 5 year average. Weakness in the Dollar helped soybean sustain their initial rally. Deliveries against Nov (which expired Friday) totaled 229 contracts. Jan +10 at 9.06; Dec Meal +5.80 at 271.30; Dec BO -28 at 32.32.


Wheat futures lost ground Monday with most contracts off more than 20 cents. MLPS experienced the heaviest selling pressure down 26 to 34 cents. USDA reported 14.27 million bushels were inspected versus 13.02 MB last week but was within trade estimates of 13 to 17 MB. Wheat futures were unable to carry the bullish momentum from much of last week's short covering themed trade and couldn't buck global fundamentals. USDA indicated winter wheat is 96% complete but dropped the Good/Excellent rating 22 percentage points from last week, down to 45% Good/Excellent. Dec CHI -20 at 5.33; KC -27 at 5.65; MLPS -34 at 6.23.