CBOT Closing Comments


Corn futures opened lower but turn sharply higher after midday, closing 21 to 23 cents higher. Trade was volatile and choppy throughout Friday and was representative in the last hour of trade. Crude oil bounced off of early morning lows and traded about $1.50 lower at $46.50 per barrel as the bailout of the Big 3 automakers stirred turmoil. The dollar was slightly lower to steady underpinning the grain markets and helped sustain the corn rally. Deliveries against the Dec contract were 96; the front month which expired today. Trade continues to buck USDA's bearish supply and demand report by trading outside markets and disregarding some fundamentals. Informa Economics showed a 3.7 million decline in corn acres planted in the spring of '09 at 82.28 million acres vs. 85.9 in 2008. Dec +21 at 3.59.


Soybeans traded 20 cents lower for a majority of Friday but rallied back to close with only marginal declines in most contracts. Private firm Informa Economics released there estimates of planted acreage this morning, suggesting farmers will plant 5.55 million more bean acres than they did in 2008, for a total of 81.45 million acres. USDA confirmed a sale to China of 116,000 MT, totaling 236,000 MT for the week. Deliveries against Dec meal were a mere one contract and Dec bean oil 843 contracts. Both Dec meal and bean oil contracts expired at noon today and January will now roll into the front month for both commodities. Jan -2 at 8.54; Dec Meal -2.30 at 258.50; Dec BO -36 at 31.10.


Wheat futures finished mixed in the three different Dec contracts, CHI and KC finished higher while MLPS closed 20 cents lower. All Dec wheat futures expired today and March will now be the front month. Deliveries issued against CHI were 138, KC had 42, and MLPS did not have any. Wheat futures continue to stare at bearish fundamental supplies bother domestically and globally, hampering upside potential. Informa projected 44.08 million acres of winter wheat planted for 2009 down from 46.2 MA in 2008. Dec CHI +15 at 5.06; Dec KC +8 at 5.30; Dec MLPS -20 at 6.04.