CBOT Closing Comments


March soybean futures closed at USD9.24 ½, down 5 cents, March soymeal futures at USD270.60, down USD3.80, and March soy oil futures at 38.38, up 43 points. USDA lowered US soybean ending stocks by more than expected to 210 million bushels from last month's 245 million bushels. Output in Brazil this year was raised by 1 MMt to a record 66 MMT however. "Although a record South American harvest is expected to reach the market in coming weeks, tight old-crop South American supplies resulting from last year's historic drought in Argentina continue to support U.S. exports," they said.


March corn futures closed at USD3.58 ½, up 2 ½ cents, and May corn futures at USD3.70 ¼, up 2 ¾ cents. The USDA lowered corn ending stocks by 95 million bushels by increasing feed, seed and industrial usage. "Corn used for ethanol is projected 100 million bushels higher reflecting the latest ethanol production data from the Energy Information Agency," they said. Corn exports for 2009/10 were projected 50 million bushels lower on increased competition from Argentina, where production was raised from 15 MMT to 17.2 MMT.


March CBOT wheat futures finished the day at USD4.82 ¼, down 1 ¾ cents, March KCBT wheat futures at USD4.90, down 5 ½ cents, and March MGEX wheat futures at USD5.05 ¾, down 6 cents. US wheat ending stocks increased 5 million bushels from last month to 981 million, whereas a small reduction had been expected. Global wheat supplies for 2009/10 were projected 1.4 MMT higher, reflecting production increases for Argentina and Ukraine. Global wheat consumption for 2009/10 was raised 1.1 MMT, higher consumption offset most of this month’s increase in world production, with projected global ending stocks rising 0.3 MMT.