CBOT Closing Comments
July soybeans closed at $12.01 ¼, up 4 ¼ cents, and November soybeans at $10.28 ½, up 3 ¾ cents. Beans closed higher on the day, but still 18-20 cents below the days highs, aided by a weak dollar. There is still a bullish old-crop, bearish new-crop story, with almost $2/bushel differential it seems crazy to suggest that this could get wider, but that is exactly what I am going to propose will happen. We are looking at two completely different stories here, old-crop (which takes us up to say September) US supplies are unbelievably tight. New-crop is a totally different kettle of fish.
July corn closed at $4.04, down 2 cents. There maybe isn't too much downside on corn, as planting delays and late seedings will maybe lead to lower yields in 2009/10. Corn planting is essentially complete but the trade still seems to think we may see a reduction in acreage on the June 30th acreage report due to unfavourable planting conditions this past spring.
July CBOT wheat ended at $5.65 ¾, down 9 ½ cents. of the selling pressure can be related to wheat harvest in the Southern Plains, although early yield reports are far from encouraging. Production prospects out of Argentina for 2009 are poor, and output from Canada, the EU-27, Russia and Ukraine are also seen lower in the coming season.
July corn closed at $4.04, down 2 cents. There maybe isn't too much downside on corn, as planting delays and late seedings will maybe lead to lower yields in 2009/10. Corn planting is essentially complete but the trade still seems to think we may see a reduction in acreage on the June 30th acreage report due to unfavourable planting conditions this past spring.
July CBOT wheat ended at $5.65 ¾, down 9 ½ cents. of the selling pressure can be related to wheat harvest in the Southern Plains, although early yield reports are far from encouraging. Production prospects out of Argentina for 2009 are poor, and output from Canada, the EU-27, Russia and Ukraine are also seen lower in the coming season.
