CBOT Closing Comments


July soybeans closed 9 1/2 cents lower at $12.09 a bushel. Wet weather will continue to plague Missouri, Illinois and Indiana over the next two weeks, says Allen Motew of QT Weather. Slow planting progress will remain an issue for farmers in these states as excessively heavy rain continues, he predicts. This may likely do more harm to corn than beans, the perception is that beans will eventually get in, and possibly 1-3 million acres more than current USDA projections. Oil World are saying 78.085m acres against the USDA's 76.024m. Old crop stocks still look likely to be much tighter than the USDA are projecting, although it's unlikely in my opinion that the USDA will accurately reflect the true picture in their revised June 10th S&D report. Caution is their watchword, some would call it lying.


CBOT July wheat closed down 5 cents at $6.69 1/2 a bushel. Profit-taking was the name of the game after some big gains Monday. The wheat harvest is progressing but at a slow pace in the Southern Plains, and reports of early yields range from disappointing to disastrous. Spring wheat plantings in North Dakota are still well behind. Even so, wheat closed well off session lows and towards the higher end of the daily range.


July corn closed up 3 3/4 cents at $4.49 1/2 a bushel, closing higher for the 4th day in a row. Rainfall will be relentless over the next ten days to two weeks targeting the all ready anomalously wet Central, Southern and Eastern Corn Belt and Delta states of Missouri, Arkansas, Illinois, Indiana, Kentucky and Tennessee, says Allen Motew of QT Weather. Across fourteen million acres of unplanted beans and four million acres of unplanted corn, farmers will continue to struggle to get their crops started and have to fight the wet weather, he adds. With new crop soybeans at $10+ there is a real enticement for US farmers to give up on corn & switch to beans.