CBOT Closing Comments Mon 5th Jan


March corn futures closed lower in today's session. Overnight trading saw corn futures lower taking away some of Friday's gains. A strengthening US dollar added bearish pressure to corn which was already weakened by competition from cheaper foreign feed wheat. The dollar strength is in part due to expectations of interest rate cuts by foreign central banks and the upcoming US administration's economic stimulus package along with tax reform. These two outweigh the higher crude oil and support from soybean influences on corn. Weekly export inspections were also well below those of the same week a year earlier. March corn closed at $4.11 1/4, down 1 cent; December corn closed at $4.55 1/4, also down 1 cent.


Soy complex futures finished mixed this session. Soybean futures and soy oil finished higher, while soy meal finished lower. A firmer US dollar added bearish pressure to soy meal. A rising crude oil driven by the recent Israeli-Palestinian conflict, Russian-Ukrainian gas dispute, and a pipeline explosion in Nigeria provided enough bullish influence to overcome the firming US dollar bear pull to soy oil futures. Soybean futures reached a 3-month peak in part due to higher soy oil product value, solid export inspections (year to date is 55 million bushels above last year) and enough ongoing drier weather in Brazil and Argentina to maintain yield concerns. January soybean finished at $9.83 3/4, up 13 3/4 cents; January soy meal finished at $298.70, down $2.30; January soy oil finished at $34.90, up $1.32.


March wheat futures in Chicago, Kansas City, and Minneapolis settled higher after trading lower most of this session. A firming US Dollar Index allowed the market to erase this past Friday's gains on wheat futures and kept wheat below its opening value, up until later during the day where wheat received spillover bullish support from soybeans to reach a 3-month high. On top of a stronger US dollar, weaker export shipments and no cold weather threats in the wheat belt limited gains to wheat futures. March CBOT wheat settled at $6.16 3/4, up 5 3/4 cents; March KCBT wheat settled at $6.42 1/4, up 8 3/4 cents; March MGEX wheat settled at $6.57 1/3, up 2 cents.