CBOT Closing Comments


March corn closed 9 1/2 cents higher. Attention is starting to focus on ideas that US farmers will plant a lot less corn in spring than they will soybeans. Whilst recent rain in Argentina may help soybeans it has maybe come too late to save corn. Tomorrow's USDA weekly export sales are expected to report another week of sales in excess of 1mmt, the sixth such week in a row, who says that demand is poor?


Beans had a bad day at the office relative to the other grains, with March closing down 3 cents. Argentina aren't on strike, China are maybe cancelling orders and US farmers are likely to plant a lot more beans in 2009 was enough to keep a lid on things today.


March wheat ended up 9 1/2 cents buoyed by US weather concerns in the southern and central Plains. Lower winter plantings, reported by the CWB yesterday, may well be confirmed by USDA figures tomorrow. World-wide the outlook for global production in 2009 is turning significantly lower. One or two serious weather scares could potentially mean output being down as much as 100mmt in the coming season. That would keep stocks very tight and leave substantial upside potential for prices.