CBOT Closing Comments
Soybeans
March Soybean finished at $10.01, up 21 cents supported by a call for hot and dry conditions to return to Argentina in the week ahead. Additional support to soybeans came from expectations of decreased ending stocks of US soybeans from this Tuesday’s USDA WASDE. The USDA will also undoubtedly lower production estimates in Argentina quite sharply, and also probably more modestly for Brazil. A weak dollar on the back of awful jobs numbers also lent support. Lower crude oil and a lack of Chinese interest during the week prevented beans from rallying too far.
Corn
March Corn settled at $3.77 1/4, up 6 cents supported by next week's weather forecasts for Argentina and spillover strength from beans. Whilst it is not too hard to make out a case for a soybean rally it is somewhat more difficult for corn. The USDA will likely trim production estimates from Brazil as well as Argentina on Tuesday. Last month the USDA put Argentina at 16.5mmt and Brazil at 53.5mmt. With crude at $40/barrel and around a fifth of US ethanol plants idle, US ending stocks are set to rise from last month's estimate.
Wheat
March CBOT Wheat closed at $5.57, down 4 3/4 cents on forecasts for rain in the US Plains. Rain is also in the forecast for parts of China's wheat area, and the government there has announced plans for widespread irrigation of crops threatened by drought. For wheat, only minor tweaks are expected from the USDA in next week's report with ending stocks maybe lowered a fraction.
March Soybean finished at $10.01, up 21 cents supported by a call for hot and dry conditions to return to Argentina in the week ahead. Additional support to soybeans came from expectations of decreased ending stocks of US soybeans from this Tuesday’s USDA WASDE. The USDA will also undoubtedly lower production estimates in Argentina quite sharply, and also probably more modestly for Brazil. A weak dollar on the back of awful jobs numbers also lent support. Lower crude oil and a lack of Chinese interest during the week prevented beans from rallying too far.
Corn
March Corn settled at $3.77 1/4, up 6 cents supported by next week's weather forecasts for Argentina and spillover strength from beans. Whilst it is not too hard to make out a case for a soybean rally it is somewhat more difficult for corn. The USDA will likely trim production estimates from Brazil as well as Argentina on Tuesday. Last month the USDA put Argentina at 16.5mmt and Brazil at 53.5mmt. With crude at $40/barrel and around a fifth of US ethanol plants idle, US ending stocks are set to rise from last month's estimate.
Wheat
March CBOT Wheat closed at $5.57, down 4 3/4 cents on forecasts for rain in the US Plains. Rain is also in the forecast for parts of China's wheat area, and the government there has announced plans for widespread irrigation of crops threatened by drought. For wheat, only minor tweaks are expected from the USDA in next week's report with ending stocks maybe lowered a fraction.
