CBOT Closing Comments


CBOT July wheat closed down 52 cents at $6.17 1/2 a bushel, as funds cashed in profits selling an estimated 7,000 contracts following steep gains in May. There was no particular huge change to the fundamentals today, crude was weaker as were the global stock markets, but a sell-off got going triggering some sell-stops and next thing we end up 50+ cents lower. The weather outlook for the northern Plains and Canadian wheat belt if very cold with sub-zero temperatures for the rest of the week. News coming out of Argentina re wheat plantings is very bullish, and early yields in the US southern Plains are terrible. Hardly worthy of a 52 cent drop! Estimates for tomorrow’s weekly export sales report are 200,000 to 400,000 MT.


July soybeans closed at $11.82, down 27 cents. Beans got caught up in spillover weakness from wheat, crude oil and equities. Nothing new particularly happened today, but some longs decided to bank a few profits. The old crop picture is still exceptionally tight. Export sales estimates for tomorrow’s report are 200,000-450,000 MT. Even sales of that magnitude, which is low compared to the last ten week average, would leave us well ahead of the USDA projections. And we still have 13 weeks left to go before the end of the marketing year! Allendale estimated old crop ending stocks at 99 million bushels today, 31 million below the USDA's last estimate.


July corn finished at $4.32 ½, down 17 ¾ cents. Corn was weighed down by wheat, falling crude and a suddenly sharply firmer dollar. As with the other grains there was an element of profit-taking after recent gains and also some sell stops generating computer-driven selling. The weather outlook for the rest of the week isn't too conducive for corn planting with cold and wet being the main theme. Estimates for tomorrow’s export sales are 650,000 to 950,000 MT.