CBOT Closing Comments


March soybean futures closed at USD9.54 ¼, up 1 ¾ cents, November soybean futures were at USD9.38 ¾, down 3 ¾ cents, March soymeal futures at USD270.50, down USD0.50/tonne and March soy oil futures at 39.81, up 31 points. It was a dull session with little movement in any of the three main grains pits. The dollar and crude oil were barely changed for most of the day too. Talk that the US are likely to extend the biodiesel tax incentive in the HIRE (Hiring Incentive to Restore Employment Act) for one year could be supportive. The Brazilian harvest is said to be 26% complete compared with 18% a year ago.


March corn futures closed at USD3.70 ½, down ¼ cent, and May corn futures at USD3.81 ½, also down ¼ cent. As with the other pits it wasn't a turnaround Tuesday, merely a day of treading water for corn. The water that corn might be treading in could come as the 5 day forecast looks much warmer than previously indicated in the Northern United States, according to Martell Crop Projections. That will lead to a rapid snow melt and potential flooding. A deep snow pack exists in the Dakotas, Minnesota, Iowa and Wisconsin that contains 4-5 inches of water, when melted. Massive run-off may occur with rapid melting. Frozen fields would not be able to absorb a massive snow melt, they warn.


March CBOT wheat futures closed at USD4.92, down ¾ cent, March KCBT wheat futures at USD4.99, down ½ cent, and March MGEX wheat futures at USD5.06 ¾, up 1 ½ cents. The USDA said yesterday that winter wheat conditions improved in Texas to 46% good-excellent, 36% fair and 18% poor-very poor. That represents a strong increase from a month earlier when just 31% of wheat was good-excellent and 29% was poor-very poor, say Martell Crop Projections. US wheat growers haven't got it all their own way however with below-normal rainfall from El Nino damaging for wheat potential in the Pacific Northwest. Meanwhile in the Eastern Midwest, Illinois wheat has deteriorated in a stormy and cold winter, dropping to 28% good-excellent, 49% fair and 23% poor-very poor, they add.