CBOT Closing Comments
Soybeans
March soybeans at $9.94, down 8 cents, disappointing but well off session lows. The USDA report cut US ending stocks in line with expectations. It also dropped Argy production quite sharply to 43.8mmt, and Braz production by 2mmt. These were towards the upper end of expectations (in terms of around the largest losses expected). US equities posted sharp declines as US Treasury Secretary Timothy Geithner fudged details of the economic rescue plan. Crude oil also fell closing $1.40 lower at $38.16/barrel.
Corn
March corn at $3.76 3/4, down 3/4 cents, well off session lows as updated forecasts in Argentina called for showers today followed by a return to drier and warmer weather for the rest of the week. This return to drought conditions will likely to continue increase stress to corn crops there. Also supportive was the USDA's surprising decision to leave US ending stocks unchanged at 1.79 billion bushels. Mexico today purchased 206,000 tonnes of US corn which also added some support.
Wheat
March CBOT Wheat closed at $5.56, down 9 cents. The USDA report wasn't really expected to throw up too many pearls of wisdom & true to type it didn't. the dollar moved higher throughout the afternoon and that dragged all the grains down with it. Nobody is sure what the implications are for wheat from drought in northern China. What we do know is that this morning, beneficial rains fell in the HRW wheat crop areas in the southern US Plains and showers fell in wheat crop areas of China’s northern plains. That seems to be sufficient to keep the market calm and allay any fears for now.
March soybeans at $9.94, down 8 cents, disappointing but well off session lows. The USDA report cut US ending stocks in line with expectations. It also dropped Argy production quite sharply to 43.8mmt, and Braz production by 2mmt. These were towards the upper end of expectations (in terms of around the largest losses expected). US equities posted sharp declines as US Treasury Secretary Timothy Geithner fudged details of the economic rescue plan. Crude oil also fell closing $1.40 lower at $38.16/barrel.
Corn
March corn at $3.76 3/4, down 3/4 cents, well off session lows as updated forecasts in Argentina called for showers today followed by a return to drier and warmer weather for the rest of the week. This return to drought conditions will likely to continue increase stress to corn crops there. Also supportive was the USDA's surprising decision to leave US ending stocks unchanged at 1.79 billion bushels. Mexico today purchased 206,000 tonnes of US corn which also added some support.
Wheat
March CBOT Wheat closed at $5.56, down 9 cents. The USDA report wasn't really expected to throw up too many pearls of wisdom & true to type it didn't. the dollar moved higher throughout the afternoon and that dragged all the grains down with it. Nobody is sure what the implications are for wheat from drought in northern China. What we do know is that this morning, beneficial rains fell in the HRW wheat crop areas in the southern US Plains and showers fell in wheat crop areas of China’s northern plains. That seems to be sufficient to keep the market calm and allay any fears for now.
