CBOT Closing Comments


August soybeans closed at USD10.52 1/2, up 25 3/4 cents; August soybean meal closed at USD310.90, up USD5.55; August soybean oil closed at 39.83, up 56 points. Continuing strong demand from China, tight old crop stocks and worries that August weather could throw a spanner in the works of US crop development kept beans to the upside. Spillover strength from wheat was also a factor.


September corn closed at USD2 3/4, up 13 1/2; December corn closed at USD6 3/4, up 13 cents. Concerns over supplies due to drought in Europe and Russia were supportive. Speculative money continues to flow into the ag commodities, with wheat seemingly leading the way higher. Today’s activity looked like fund buying, although we may have to wait until next Friday's CFTC report for confirmation of that.


Sept CBOT wheat closed at USD6.74 1/2, up 34 cents; Sept KCBT wheat closed at USD6.74 1/2, up 28 1/4 cents; Sept MGEX Wheat closed at USD6.87 3/4, up 29 1/2 cents. EU wheat set multi-year highs and the Canadian Wheat Board issued an updated all wheat estimate of 18.45 MMT vs their previous 18.9 MMT forecast. Russia look set to cut their 2010/11 exports in half after a severe drought cut production back sharply.