CBOT Closing Comments

Soybeans

July soybeans closed at $12.13 ¾, up 7 ½ cents, November soybeans finished at $10.43 ½, down 6 ½ cents. It remains a bullish old crop/bearish new crop story it seems. China bought old-crop beans again according to the weekly USDA export sales report. Whilst they were also in evidence booking new-crop beans, purchases for the 2008/09 marketing year are much more significant given the tightness of old-crop stocks. The much talked about cancellations once again failed to materialise.

Corn

July corn closed at $4.03 ¼, down 4 ½ cents, and December corn ended at $4.23 ¾, down 5 cents. Energy prices were mostly lower today with the exception of the first few contracts of crude oil. Weekly export sales were stronger than expected, and helped to limit the losses. Trade talk continues to suggest a switch from corn to soybean acres of 1-3 million, which is supportive for new-crop corn.

Wheat

July CBOT wheat closed at $5.60 ¼, down 5 ¾ cents. The US harvest is starting to gather a pace, with cutting in the largest winter wheat state of Kansas now underway, which is adding some pressure to futures prices. Weather conditions are favourable for the progression of the harvest over the next few weeks. Production in Europe and Argentina is seen lower in 2009 which is bullish, but more concrete export business is needed.