CBOT Closing Comments


Corn futures had a strong finished in the last few trading minuets Wednesday, posting gains of 14 to 15 cents. The bounce in prices is impressive despite trade looking for a bearish USDA supply and demand report tomorrow morning. Gains were credited to short position covering, softness in the US Dollar, and higher crude oil. Short position holders are seen taking money off the table ahead of Thursday�s reports even though trade is estimating larger ending stocks, (possibly pushing prices lower) in order to clear books ahead of year end. Deliveries issued against front month Dec (which expires Friday) were 667. Dec +14 at 3.26.


Soybean futures also had a strong showing Wednesday marking gains of 16 cents or better in all contracts. Soybean traders are looking for tighter ending stocks than what USDA reported back in November when USDA releases their monthly reports Thursday morning. The average trade guess for soybean ending stocks dropped slightly from Nov estimate (205 MB) to 202 million bushels. The thought of tighter supplies underpinned the soy complex's gains today along with the aid of outside markets. Crude oil had gains of $1.50 for most of grain trading hours and the US Dollar fell to mid $85 range lending support to soybeans. 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 764 issued. Jan +16 at 8.29; Dec Meal +4.90 at 250.40; Dec BO +1.05 at 30.59.


Wheat futures shot sharply higher with support from the bullish commodity theme that took place on Wednesday. Bulls also had some fresh friendly fundamental news with average trade estimates for an 8 million bushel reduction from USDA's November ending stocks estimate of 603 MB. The reduction is derived from exports being shipped at a faster pace than anticipated by USDA and may pave the way for additional sales. Wheat futures, like corn and soybeans received support from outside markets; lower dollar and higher crude oil. Deliveries issued against 1,010 for Dec CHI, 118 Dec KC, and 9 for Dec MLPS. Dec CHI +20 at 4.92; Dec KC +15 at 5.15; Mar MLPS +21 at 5.90.