CBOT Closing Comments


July CBOT wheat closed at a four month high of $6.12 ½, up 19 cents. Fund money seems to be coming back into commodities, and outside markets were firmer, which helped wheat. Fundamentally though, wheat was the firmest of the grains because US weather offers the most threat to the crop. Spring wheat (and to a degree corn) plantings are severely delayed, soaring soybean prices offer an opportunity to cash in on this. World production is shrinking in 2009, with almost all the major exporters looking at sharply reduced crops. Meanwhile Egypt has got big problems with the quality of Russian wheat.


July soybeans finished at $11.66, down 9 cents. Soybeans closed lower on the old crop and higher on the new, narrowing the July/November Soybean spread by 17 cents. Futures moved higher early in the session but profit-taking ahead of the long weekend put levels on the defensive by the close. Weekend weather in the US is the next major factor and things could look a lot different on Tuesday morning when the markets next re-open.


July corn closed at $4.30 ¼, up 6 ¼ cents. Wet weather in the Midwest is seen as continuing to delay corn plantings which will ultimately reduce final output there. Crude oil was firmer, and the dollar weaker which also added support. Spillover strength from wheat was also a factor today.