CBOT Closing Comments


Corn futures closed with marginal declines Tuesday. Today's close may give hope to beaten up bulls as bears did not quickly take away Monday's gains and could give further support ahead of USDA reports on Thursday. Outside markets turned softer as the day grew long, crude dropped $1.50 per barrel and the Dow Jones Industrial average was off more than 200 points weighing in on prices and could push prices lower in over night trade. Deliveries issued against Dec were 889; Dec '08 contract is set to expire on Friday. Dec -2 at 3.12.


Soybeans were in range trade Tuesday, initially opening lower with some choppy trade and close slightly lower. Some profit taking from yesterday's steep rallies pushed prices lower along with weaker crude oil prices. Thursday USDA will release their monthly crop production and supply and demand reports. Bearish fundamental news is mounting in South America as the top two soybean producing countries are receiving moisture to benefit crops and soil moisture for unseeded plants. Both Dec meal and bean oil contracts are set to expire on Friday. Dec meal had a mere 1 delivery issued and bean oil had 214 issued. Jan -7 at 8.13; Dec Meal -3.80 at 245.50; Dec BO +.06 at 29.54.


Wheat futures closed mixed but all exchanges saw very little changes closing prices from Monday�s. Tuesday was a relatively quiet day compared to the last three trading days with heavy selling pressure last Thursday and Friday and a steep jump in prices Monday. Japan issues for 83,000 metric tonnes of US and Australian wheat for milling purposes. Deliveries issued against 1,373 for Dec CHI, 8 Dec KC, and zero for Dec MLPS as a positive basis is still in tack there. Wheat futures could get a bit of excitement before the USDA reports on Thursday as pre positioning and position squaring takes place. Dec CHI 3/4 at 4.72; Dec KC -1 at 5.00; Mar MLPS +1/4 at 5.68.