CBOT Closing Comments


July soybeans closed at $12.67, up 21 cents; November soybeans finished at $10.89 ¾, up 10 ½ cents. Nearby July meal was limit up at one point on both spec and crusher buying, but faded into the close to finish up $14.60 at $428.00. Old crop stocks remain ludicrously tight, there seems to be two sides of a story developing here. Story a, the last two weeks have seen negative old crop sales due to cancellations/deferrals, price is rationing demand. Story b, the lack of supply from Argentina is forcing way more export sales to be made from the US than is normal at this time of year, the late planting of US beans, leading to a late harvest could mean that the US run out of beans.


July CBOT wheat closed at $5.94 ¾, down 1 ¼ cents, despite having traded higher for much of the session. There isn't really a whole lot of fresh news for wheat. The USDA dropped 2009 winter wheat production by 10 million bushels, nut also lowered usage by 20 million, increasing ending stocks by 10 million. The weak dollar was supportive for wheat, but more export demand is wanted to underwrite current prices.


July corn finished at $4.41, up 5 ¼ cents. Weekly export sales were strong yet again for corn, and crude was higher and the dollar lower, providing underlying support. Yesterday's USDA report was mildly supportive for corn, especially so for new-crop months. Any further delays in US plantings should help long-term corn levels.