CBOT Comments
Corn
Corn futures closed with severe contract losses. Most contracts found themselves in unfamiliar prices when the closing bell rang Friday, heavy fund selling before year end initiated the selling pressure. December corn broke below $3 per bushel for first time since late 2006!! Crude oil has made new lows everyday this week and is dragging grains down; the dollar was higher and added to the pressure. Uncertainties still linger for the ethanol industry; ethanol giant VeraSun has not been at full capacity for more than 45 days now and continue to grind less corn. All bearish factors stated above are fueling the aggressive sell off Friday. Deliveries issued for December were 1,498 contracts. Dec -24 at 2.93.
Soybeans
Soybeans closed from 27 to 34 lower amid heavy index fund selling. Front month Jan closed below $8 for the first time in 17 months. Unemployment for November soared to multiyear highs at 6.7% renewing the ever real fears of a severe recession. Forecasts for rain showers in Argentina to aid crops weigh but Brazil remains dry. China to purchase 110,000 metric tonnes of US soybeans, China persists on being US's larger importer of beans. Broad commodity selling is spilling over into the soy complex forcing prices lower. Jan -27 at 7.83; Dec Meal -6.80; at 240.50 Dec BO -97 at 28.25.
Wheat
Wheat futures could not shrug off the bearish tone derived in the CBOT corn and soybean pits and closed lower at all three exchanges Friday. Stumbling crude oil and stronger dollar kept the lid on short covering rally. Deliveries issued for December were hefty and seen at 3,048 contracts. The ever lasting over hang of huge global production and abundant supply of less quality wheat substituted for feed has tanked US wheat futures of late. Dec CHI -10 at 4.57; Dec KC -7 at 4.89; Mar MLPS -11 at 5.61.
Corn futures closed with severe contract losses. Most contracts found themselves in unfamiliar prices when the closing bell rang Friday, heavy fund selling before year end initiated the selling pressure. December corn broke below $3 per bushel for first time since late 2006!! Crude oil has made new lows everyday this week and is dragging grains down; the dollar was higher and added to the pressure. Uncertainties still linger for the ethanol industry; ethanol giant VeraSun has not been at full capacity for more than 45 days now and continue to grind less corn. All bearish factors stated above are fueling the aggressive sell off Friday. Deliveries issued for December were 1,498 contracts. Dec -24 at 2.93.
Soybeans
Soybeans closed from 27 to 34 lower amid heavy index fund selling. Front month Jan closed below $8 for the first time in 17 months. Unemployment for November soared to multiyear highs at 6.7% renewing the ever real fears of a severe recession. Forecasts for rain showers in Argentina to aid crops weigh but Brazil remains dry. China to purchase 110,000 metric tonnes of US soybeans, China persists on being US's larger importer of beans. Broad commodity selling is spilling over into the soy complex forcing prices lower. Jan -27 at 7.83; Dec Meal -6.80; at 240.50 Dec BO -97 at 28.25.
Wheat
Wheat futures could not shrug off the bearish tone derived in the CBOT corn and soybean pits and closed lower at all three exchanges Friday. Stumbling crude oil and stronger dollar kept the lid on short covering rally. Deliveries issued for December were hefty and seen at 3,048 contracts. The ever lasting over hang of huge global production and abundant supply of less quality wheat substituted for feed has tanked US wheat futures of late. Dec CHI -10 at 4.57; Dec KC -7 at 4.89; Mar MLPS -11 at 5.61.
