CBOT Closing Comments


Corn futures closed locked in limit down with March corn futures at USD3.92 ½, down 30 cents, and May corn futures at USD4.03, also down 30 cents. The USDA surprised the market pegging US 2009 production at a record 13.2 billion bushels, with a yield of 165.2bu/acre that beat the previous record my a country mile. The much touted fund buying turned into fund selling, with an estimated 8,000 contracts ditched during the session.


January soybean futures closed sharply lower at USD9.69 ½, down 32 ¼ cents, January soymeal closed at USD295.40, down 9.30 points, and January soy oil futures at 38.26 cents, down 93 points. As with corn, records fell like confetti for soybeans. The USDA now estimate the 2009 crop at an all-time high 3.361 billion bushels, up 13% from the 2008 soybean crop. Harvested acres are also record at 76.4 million acres. Production out of Brazil was raised 2 MMT to a record 65 MMT and Argentine output was left unchanged at 53 MMT - but yes, that too is a record.


March CBOT wheat futures ended sharply lower at USD5.35 ¾, down 36 ¾ cents, March KCBT wheat futures at USD5.34, down 32 cents, and March MGEX wheat futures at USD5.40 ¾, down 37 ¼ cents. All the USDA's wheat stocks data was bearish. US ending stocks were raised to 976 million bushels from 900 million in last months report, the largest ending stocks number since 1988. US exports were cut from 875 to 825 million bushels, the lowest figure since 1971-72. Domestic feed and residual usage was cut from 190 million to 170 million bushels. World wheat production increased 2.27 MMT and ending stocks increased by 4.69 MMT to 195.6 MMT, a 62% increase in just two years.