CBOT Closing Comments
Soy
March soybeans finished 13 1/2 cents lower, at $9.46, roughly in the middle of the days trading range. Heavier than anticipated overnight rain in Argentina, and the forecast of more to come led to selling from the outset. However, the jury is still out on exactly how much damage in South America is irreversible. Quite a lot according to my information, with the Argentine crop "at least" 20% lower than originally anticipated no matter what the effect of rain in the last 48 hours.
Corn
Corn closed lower with March ending down 8 3/4 cents at $3.61 3/4 per bushel. As with beans Argentina weather is dominating the market at the moment. It seems clear that some decent rains have arrived, but it remains unclear how much benefit the corn crop will receive in the wake of the worst drought in living memory. The USDA is out with its latest S&D report next week, undoubtedly it will lower production in Brazil as well as Argentina. ADM announced nearly 21% of US ethanol production capacity has been shut down as a result of decreased demand and declining margins. The implications for corn demand in the US are obvious.
Wheat
Wheat closed 11 1/4 cents lower at $5.52 1/2 a bushel, pulled down by weakness in the other grains pits. There are some hopes that the US will pick up some export orders this week. Japan will buy American wheat Thursday, whilst Iraq, Pakistan and Egypt are also in the market. Talk that Black Sea supplies are tightening up and that US wheat is now cheaper, thanks to a subdued freight market, helped add a bit of support. Crop conditions for winter wheat in the US are not good at all. Today Oklahoma agricultural officials reported that wheat crop condition in Oklahoma's estimated 5.4 million acres was 36% rated poor to very poor, and the Texas Agricultural Statistics Service reported that wheat crop condition in the estimated 5.9 million acres there was 64% rated poor to very poor.
March soybeans finished 13 1/2 cents lower, at $9.46, roughly in the middle of the days trading range. Heavier than anticipated overnight rain in Argentina, and the forecast of more to come led to selling from the outset. However, the jury is still out on exactly how much damage in South America is irreversible. Quite a lot according to my information, with the Argentine crop "at least" 20% lower than originally anticipated no matter what the effect of rain in the last 48 hours.
Corn
Corn closed lower with March ending down 8 3/4 cents at $3.61 3/4 per bushel. As with beans Argentina weather is dominating the market at the moment. It seems clear that some decent rains have arrived, but it remains unclear how much benefit the corn crop will receive in the wake of the worst drought in living memory. The USDA is out with its latest S&D report next week, undoubtedly it will lower production in Brazil as well as Argentina. ADM announced nearly 21% of US ethanol production capacity has been shut down as a result of decreased demand and declining margins. The implications for corn demand in the US are obvious.
Wheat
Wheat closed 11 1/4 cents lower at $5.52 1/2 a bushel, pulled down by weakness in the other grains pits. There are some hopes that the US will pick up some export orders this week. Japan will buy American wheat Thursday, whilst Iraq, Pakistan and Egypt are also in the market. Talk that Black Sea supplies are tightening up and that US wheat is now cheaper, thanks to a subdued freight market, helped add a bit of support. Crop conditions for winter wheat in the US are not good at all. Today Oklahoma agricultural officials reported that wheat crop condition in Oklahoma's estimated 5.4 million acres was 36% rated poor to very poor, and the Texas Agricultural Statistics Service reported that wheat crop condition in the estimated 5.9 million acres there was 64% rated poor to very poor.
