CBOT Closing Comments


Corn prices finished slightly higher, with September corn at $3.14 ½, up ¼ cent, and December closing at $3.22 ½, up ¾ cent. Weather continues to be mostly favourable with normal temperatures and timely rains in most of the corn region. The USDA pegged the national average corn yield at 161.4 bushels per acre on the first official report on August 12. If realized, this yield would be higher than the previous record 160.4 bushels per acre set in 2004, and would result in a harvest 12.76 billion bushels of corn., says Gail Martell of Martell Crop Projections.


September soybeans closed at $9.95 ½, up 7 ½ cents, with November beans at $9.59, up 4 ½ cents. A late recovery in crude oil helped beans this afternoon, along with China being in the market the past couple of days for more soybeans. Crop progress is still lagging with beans only 72% setting pods compared to 85% for the five year average. China will hold another auction for 500,000 MT of government-held soybean stocks tomorrow. Sales so far have been less than impressive, however reports that the government are said to be considering a 200 yuan/tonne ($29.26) subsidy to soybean crushers to encourage them to purchase government stocks might help.


September wheat at $4.70 ½, down 1 ¼ cents. The crop progress report Monday night showed 94% of the winter wheat is harvested, in line with normal. However only 13% of the spring wheat crop is harvested compared to 33% last year and 48% for the five year average. Canadian weather is forecast to turn cool and wet during the next few days delaying harvest and spring wheat development. Spec funds added to their wheat shorts today, continuing to drive the market lower.