CBOT Closing Comments


CBOT March soybeans ended 7 cents higher at USD9.47 1/2 a bushel, and May soybeans settled 7 1/2 cents higher at USD9.57. Oversold conditions prompted profit taking by shorts and the market reversed the recent downward trend. Reports emanating from China suggest that they may increase their soybean processing capacity by up to 6 MMT in 2010.


March corn ended down 5 1/2 cents at USD3.62 1/4 per bushel, and May corn ended down 5 1/2 cents at USD3.73 1/4. The Argentine corn crop is now estimated at 18 MMT, some 3 MMT higher than was thought a few months ago. A tightening of fiscal policy in China remains a concern, as too does potential meddling with speculation by President Obama.


CBOT March wheat ended down 4 1/4 cents at USD4.94 a bushel, KCBT March wheat lost 1 1/2 cents to USD4.99 1/2, and MGE March wheat fell 2 cents to USD5.10 1/4. Although US acreage is down this year, global wheat stocks are sharply higher than the past couple of years. US stocks are higher than for many years. US exports need to pick up to meet USDA targets for 2009/10.