CBOT Closing Comments


July soybeans closed at $12.26 ¼, up 11 ¼ cents, November soybeans at $9.81, down 2 ½ cents. The USDA numbers were actually modestly bullish for beans, but overwhelmingly bearish for corn and a bit more modestly do for wheat. Corn finished sharply lower dragging everything else down with it. The old-crop picture for beans remains quite bullish with the distinct possibility of further technical squeezing yet to come. For new-crop however I think I'd have to say I'd rather sell it than buy it.


July corn closed at $3.47 ¾, down 29 ¼ cents and December at $3.67 ¼, down 30 cents, closing limit down on the first three months of new crop. The USDA acreage number shocked the trade, coming in a million acres higher than the highest trade estimate, and two and a half million above the average trade guess. With acreage numbers like this, the USDA can be expected to raise ending stocks in their July report too. Weather conditions remain pretty conducive for rapid crop development over the next week or so.


July CBOT wheat finished at $5.11 ¼, down 17 ¼ cents. All wheat planted acres were increased by around a million, which potentially increases ending stock in next month's Supply & Demand report. Winter wheat harvesting is progressing well, with hot and dry weather enabling rapid advancement. Any bullish news is out of the window, the bears are in the driving seat for the time being. Japan is expected to buy 108,000 MT of mostly US wheat in a routine tender Thursday.