CBOT Closing Comments


July soybeans closed at USD9.35, down 8 1/2 cents; July soybean meal closed at USD282.30, down USD3.20; July soybean oil closed at 36.75, unchanged. The monthly WASDE report showed estimated 2009/10 soybean ending stocks at 185 million bushels and 2010/11 ending stock projections at 360 million bushels. Both were in line with trade estimates. Negative news however came from China cancelling 250-440,000 MT of South American soybeans that were scheduled for June delivery. Today's export sales report came in a bit better than the trade guess at 420,600 MT for 2009/10 delivery and 130,000 MT for 2010/11 delivery.


July corn closed at USD3.43 1/4, up 5 cents; Dec corn closed at USD3.64 1/2, up 6 cents. The monthly WASDE report was bullish, pegging 2009/10 corn carryout at 1.603 billion bushels, 135 million below last months report and 121 million below the average trade guess. The 2010/11 carryout came in at 1.573 billion bushels also significantly below the May 1.818 billion bushel estimate. Weekly export sales were 1.018 MMT for 2009/10 delivery, sharply higher than trade estimates and sales for 2010/11 were 143,500 MT.


July CBOT wheat closed at USD4.33 1/4, up 5 1/4 cents; July KCBT wheat closed at USD4.62 1/2, up 4 1/2 cents; July MGEX wheat closed at USD4.90 1/4, up 4 cents. The monthly WASDE report increased U.S. 2010/11 wheat production by 24 million bushels (653,000 MT) for all wheat. Weekly export sales for the first week of the 2010/11 marketing year were poor at 118,300 MT. The USDA lowered world 2010/11 wheat production by over 3.5 MMT from last month, and carryout fell by more than 4 MMT. Even so, we aren't exactly in a deficit situation.