CBOT Closing Comments (31st Dec)


March corn futures closed double-digits higher in today's session. July corn futures also traded higher. These gains in corn were in part due to a late rally in grains and crude oil futures. Crude oil futures during the afternoon trading session soared to over $4 in gains. A large block of market-on-close & end of year orders sent corn futures (which traded lower most of the day), to a sharply higher close. This afternoon the USDA issued a report of its 5-year revisions to US production and ending stocks estimates. As expected the USDA report did not contain any major market-shaking information. One revision to note was a reduction of 36 million bushels of corn to the 2007 production, from 13.073 billion to 13.037 billion. Due to the holidays, US export sales of corn and other grains for last week will not be released until this Friday. March corn closed at $4.07, up 10 3/4 cents; July corn closed at $4.28, up 11 cents.


January soy futures complex ended higher after trading mixed most of today's session. An afternoon rally in crude oil contributed to a bean oil rally and pushed the soy complex further into bull territory. Most of the soybean rally was provided by a large block of market-on-close & end-of-year orders. Scattered showers are forecasted in southern Brazil later this week, but not expected to alleviate current dry conditions there. Dry weather conditions continue in Argentina. This afternoon the 5-year revision report by the USDA did not contain any significant changes to soybean production or ending stocks. January soybean ended at $9.72 1/4, up 26 1/2 cents; January soy meal ended at $300.50, up $2.50; January soy oil at $33.29, up $1.18.


March wheat futures in Chicago, Kansas City, and Minneapolis settled higher this trading session. A late, large block of market-on-close & end-of-year orders provided enough bullish support to rally wheat. This afternoon rally erased the lows wheat were trading during most of the morning, to have wheat futures to end in positive territory. Bullish spillover from the equities market also contributed to wheat's rally. Iraq bought wheat from 3 other countries, but not from the higher priced US. CBOT March wheat settled at $6.10 3/4, up 6 cents; KCBT March wheat settled at $6.30, up 8 1/4 cents; MGEX March wheat settled at $6.30, up 8 1/4 cents.