CBOT Closing Comments
Corn
Corn futures finished near flat for a quiet Wednesday before the Thanksgiving Holiday on Thursday. Higher crude oil helped to underpin most grains, no big price movements aroused but spreading of December/March as Friday market First Notice Day for the front month. Bulls tried to rally on news of Egypt purchasing 120,000 MT of US corn but the news was offset by Japan buying a large portion of Black Sea corn. US commodities remain more expensive than other foreign regions resulting in diminishing exports and ultimately lower prices and building supplies. Crude oil and the dollar were moderately higher and grains finished steady to flat; could that relationship be breaking? Dec +1/2 at 3.54.
Soybeans
Soybeans closed marginally higher today, receiving support from higher crude oil. Basis is seasonally narrow in most Midwest regions as farmers remain reluctant to sell, this is possible with enormous on farm grain storage expansion over the past 3 years. Census Bureau released bearish crush estimates for October of 149.75 MB below trade guesses of 151.2 MB. Strength in crude oil at midday is underpinning soybeans; bean oil stocks were lower from the previous month, indicating increase in demand, less production or a combination. Jan +3 at 8.86; Dec Meal +.70 at 263.20; Dec BO +26 at 32.50.
Wheat
Wheat futures finished with mixed gains and losses. CHI wheat pegged marginal gains from spillover support from other CBOT grains while KCBT and MLPS wheat futures closed with moderate declines. China, along with the European Union are attempting to stimulate their economies by cutting interest rates and approving financial backing much like the US. With global stimulus plans or policies in place, better days for consumption and demand for US grains may be ahead. Remember First Notice Day for all Dec wheat contracts is Friday and squaring of positions before the closing bell rings today could be a main theme. Dec CHI +1 at 5.35; KC -3 at 5.58; MLPS -4 at 6.01.
Corn futures finished near flat for a quiet Wednesday before the Thanksgiving Holiday on Thursday. Higher crude oil helped to underpin most grains, no big price movements aroused but spreading of December/March as Friday market First Notice Day for the front month. Bulls tried to rally on news of Egypt purchasing 120,000 MT of US corn but the news was offset by Japan buying a large portion of Black Sea corn. US commodities remain more expensive than other foreign regions resulting in diminishing exports and ultimately lower prices and building supplies. Crude oil and the dollar were moderately higher and grains finished steady to flat; could that relationship be breaking? Dec +1/2 at 3.54.
Soybeans
Soybeans closed marginally higher today, receiving support from higher crude oil. Basis is seasonally narrow in most Midwest regions as farmers remain reluctant to sell, this is possible with enormous on farm grain storage expansion over the past 3 years. Census Bureau released bearish crush estimates for October of 149.75 MB below trade guesses of 151.2 MB. Strength in crude oil at midday is underpinning soybeans; bean oil stocks were lower from the previous month, indicating increase in demand, less production or a combination. Jan +3 at 8.86; Dec Meal +.70 at 263.20; Dec BO +26 at 32.50.
Wheat
Wheat futures finished with mixed gains and losses. CHI wheat pegged marginal gains from spillover support from other CBOT grains while KCBT and MLPS wheat futures closed with moderate declines. China, along with the European Union are attempting to stimulate their economies by cutting interest rates and approving financial backing much like the US. With global stimulus plans or policies in place, better days for consumption and demand for US grains may be ahead. Remember First Notice Day for all Dec wheat contracts is Friday and squaring of positions before the closing bell rings today could be a main theme. Dec CHI +1 at 5.35; KC -3 at 5.58; MLPS -4 at 6.01.
