CBOT Closing Comments


March soybean futures closed at USD9.32 ½, down 22 cents; November soybean futures were USD9.25, down 17 ½ cents; March soymeal futures at USD257.90, down USD8.60; March soy oil futures are at 39.63, down 0.39 points. Meal was again the weakest leg, hitting 11-month lows on increased competition from DDGS. Informa upped their Argentine production estimate to 55 MMT, 2 MMT above the USDA and 3 MMT higher than the Buenos Aires Grain Exchange. Weekly export sales were in line with expectations, although slanted in favour of new crop. Sales of 182,400 MT for old crop were a marketing-year low. China didn't book any old crop.


March corn futures closed at USD3.72, down 3 ¾ cents, with May corn futures at USD3.83, also down 3 ¾ cents. Weakness from beans and wheat weighed on corn, although concerns over delayed spring plantings helped compared to the other pits. Informa are obviously getting good vibes out of Argentina at the moment, raising their production estimate to 21 MMT, compared with just 17.2 MMT from the USDA and a more realistic 20.2 MMT from the Buenos Aires Grain Exchange. Weekly export sales were above expectations at 761,400 MT for delivery in 2009/10, plus 72,000 MT for delivery in 2010/11.


March CBOT wheat futures closed at USD4.90 ½, down 13 cents; March KCBT wheat futures are at USD5.00, down 9 ½ cents; March MGEX wheat futures were at USD5.11 ½, down 9 ½ cents. It's one step forward and two steps back for wheat at the moment. Weekly export sales were very poor at 104,100 MT, highlighting exactly how uncompetitive US wheat has become. Informa upped their Indian crop estimate by 2 MMT to 82 MMT. Spillover weakness from the soy pit also helped weigh on wheat futures, which maybe gained more then they should have done, given the fundamentals, in Wednesday's session.