Chicago Closing Comments

03/11/10 -- Soybeans

CBOT Jan soybeans settled 3 1/2c higher at USD12.37 1/2 a bushel; soymeal ended USD1.20 higher at USD338.90; December soyoil closed 27 points higher at 49.90. The Fed said it will pump in around another USD600 billion worth of QE into the US economy. That should keep the dollar weak, and support US commodities in general. Tomorrow brings the USDA's weekly export sales report, they've had two weeks now of sales in excess of 2 MMT. Estimates for tomorrow range 1-1.5 MMT, but another 2 MMT plus week is not out of the question.


CBOT Dec corn ended 5 1/4c higher at USD5.81; CBOT Dec corn also closed 5 1/4c higher at USD5.94 1/2. The trade is expecting the USDA to side with Informa and FCStone, who both cut their corn production estimates earlier in the week, when they come out with their November forecasts next Tuesday. Trade estimates for tomorrow's weekly export sales report range around 450-650,000 MT. Steady crude oil, which is now trading around USD85/barrel and nudging towards USD90/barrel, was also supportive.


CBOT Dec wheat settled down 4c at USD6.90 1/4; KCBT Dec wheat fell 2c to USD7.46 1/2; MGEX Dec wheat rose 1 1/4c to USD7.64. MGEX climbed on spread activity between the three exchanges with sellers on CBOT and Kansas buying Minneapolis wheat. The Fed announced that they would purchase 600 billion dollars worth of treasuries over the course of the next six months. This is deemed as long term supportive for US grains in general. US weather remains a concern for winter wheat.