CBOT Closing Comments


March soybeans closed 18 1/2 cents lower at USD9.29 a bushel, March soymeal closed down USD6.10 at USD281.30, and March soyoil tumbled 45 points to close at 36.32 cents per pound. The market was nervous ahead of President Obama's State of the Union address tonight. Record production is just around the corner from South America, which combined with a tightening of fiscal policy by China, that could spell trouble for demand for US soybeans.


March corn ended down 4 cents at USD3.58 1/4 a bushel, and May corn ended down 4 cents at USD3.69 1/4. Both the Rosario and Buenos Aires Grain Exchanges see the 2010 Argentine corn crop around 18 MMT, 3 MMT higher than the USDA's last estimate, and 5.4 MMT above last year. Beneficial rains, increased fertiliser usage and a pick up in biotech plantings are responsible for increased corn production in South America this season.


CBOT March wheat closed down 10 1/4 cents at USD4.83 3/4 a bushel, KCBT March wheat fell 9 cents to USD4.90 1/2, and MGE March wheat ended down 5 1/2 cents at USD5.04 3/4. Prices fell to three-month lows ahead of Obama's speech tonight, which traders fear will rein in speculative activity on the grains market. Egypt passed on US and EU wheat yet again today, buying 180,000 MT of Russian milling wheat at USD178.50/tonne FOB.