CBOT Closing Comments


Corn futures bounced higher after suffering severe losses last week, gaining 20 to 22 cents Monday. Corn along with most grains opened sharply higher and maintained those gains throughout the day but the question is whether or not those gains can be withheld and develops a bottom or is this just a breather for the bears. Crude traded $3 higher adding support to grains and additional help came from a weaker US Dollar. Deliveries issued against Dec were 1,044 contracts. USDA corn inspections for export were 21.34 MB well below last week's of 37.269 MB. Dec +20 at 3.14.


Soybeans continued higher morning prices and closed above $8 per bushel. Higher crude oil helped boost soybean futures Monday. Fine exports especially to China underpin soybeans as ending stocks are seen around 205 MB, lower inventories and steady demand could help boost futures prices but again fundamentals have not been trading that last month or so with heavy position liquidation pressures prices lower before year end. The US Dollar should hopefully be making commodities cheap enough to attract some global buyers. USDA inspected 40.63 MB vs. 39.88 last week and was on the high side of trade estimates. Jan +37 at 8.20; Dec Meal +8.80 at 259.30; Dec BO +1.23 at 29.48.


Wheat futures followed CBOT grains higher in trade Monday with spring wheat posting the highest day gain for the Dec contract of the different exchanges. Wheat like corn had disappointing weekly grain export inspections but was practically ignored in Monday's trade as traders focused on oversold conditions and outside market influences. All Dec wheat contracts are set to expire Friday and deliveries issued for CHI December were seen at 1,991, Dec KC 409, and Dec MLPS 0 contracts as basis is reported being positive there. USDA inspected a mere 12.57 MB vs. 20.61 MB last week and lags last year's pace by 108.2 MB. US winter wheat crop remains in good condition, being benefited with ample moisture and the absence of severe weather. Dec CHI +15 at 4.73; Dec KC +12 at 5.01; Mar MLPS +17 at 5.68.