CBOT Closing Comments


Corn futures closed 1 to 2 cents higher Monday. The US Dollar stumbled lower again Monday creating buying interest across the commodity board and helped push CBOT corn futures higher. Private firms are estimating several million acres swing away from corn. USDA inspected 29.3 million bushels for export last week which was better than trade had estimated of 22 -26 MB. Initial rallies in crude oil and a softer dollar supported grains throughout trade on Monday. Trade may be starting to trade acres as Informa released their projections of 82.2 million acres, which is about 3.5 million off of 2008 bad about 10 million acres from 2007. Deliveries issued against the Dec ?08 contract (expired) were 136. Mar +1 at 3.75.


Soybeans backed off of midday rallies and closed several cents lower. Corn/Bean spreading was noted pressuring soy prices lower. Soybean crushings were their lowest since 1996 for the month of November at 139.4 million bushels. USDA reported export inspections of 34.4 million bushels of soybeans last week, but was slightly below trade guesses of 35-40 MB. Beans received some underlining support from the outside markets but fell as crude oil erased daily gains. Regions of Argentina and Brazil still remain severely dry and will need moisture to boost growing crops, also to aid soil moisture to any unseeded plants. Informa Economics released there estimates of planted acreage Friday, suggesting farmers will plant 5.55 million more bean acres than they did in 2008, for a total of 81.45 million acres, the increase in acres may limit upside potential as supplies should increase. Jan -8 at 8.46 Jan Meal -.90 at 256.80 Jan BO -37 at 30.55.


Wheat futures were mixed at the different exchanges Monday when the closing bell rang. Gains were noted in most CHI and KC contracts but spring wheat closed marginally lower in the front month. Wheat futures were boosted by higher CBOT corn and a weaker dollar. Deliveries issued against the expired Dec contract were 107 contracts. USDA reported export inspections of 12.3 million bushels below trade estimates of 13-17 million bushels. The softer tone in the dollar is lending support to wheat exports and futures. Iraq has issued a tender to purchase 50,000 metric tonnes; additional tenders are expected to be announced later in the week. Dormant winter wheat could be threatened by winter kill as temps across northern plains reach well below zero degrees Fahrenheit. Mar CHI +7 at 5.20; Mar KC +4 at 5.43; Mar MLPS -1 at 5.89.