CBOT Closing Comments


January soybean futures closed at USD10.29 ½, up 19 ½ cents, December soymeal at USD308.70 up USD4.30 and December soy oil at 39.81 cents, up 4 points. Last week's export shipments were a marketing year high of 1,636,200 MT and inspections for this week are at 1,628,715 MT, underlying the fact that soybean demand remains very strong. Most of the business continues to come from China. Concerns remain over drought in parts of Argentina, with Oil World cutting its 2010 crop production estimate there by 2 MMT for the second month in a row to 48 MMT.


December corn futures closed at USD4.02, down ¼ cent, and March corn at USD4.17 ½, unchanged. Whilst demand seems to have slackened off the past few weeks, the USDA today announced a sale to Mexico of 209,983 MT for the 2009/10 marketing year and 77,364 MT for 2010/11 delivery. The US harvest is well behind schedule at just 54% completed as of Sunday, harvesting this week is expected make slower progress than the past 2 weeks with recurring showers on 3-4 days, according to Gail Martell of Martell Crop Projections.


December wheat futures finished the day at USD5.74 ¾, up 12 ½ cents. Large spec shorts have left themselves vulnerable to a correction in the wheat market that few had foreseen, with wheat prices having gained 30% since the first week of October. US SRW wheat plantings are expected to decline 15-20% this winter due to the delayed corn and soybean harvest and soggy soil conditions. The dollar is near the low end of the past 15 month trading range, that should make US wheat attractive to foreign buyers but it is not reflected in the export picture yet. Japan are expected to buy 71,000 MT of US wheat in a routine tender Thursday.