CBOT Closing Comments

03/12/10 -- Soybeans

CBOT Jan soybeans ended 20 1/2c higher at USD13.00 1/4c a bushel; Jan soymeal rose USD5.90 to USD351.60; Jan soyoil ended 61 pips higher at 53.45. Beans broke through the psychologically important USD13/bushel mark, with Jan posting the highest weekly settlement in the life of the contract. The dollar fell on the back of a lower than expected nonfarm payroll increase, and crude oil posted it's highest close since October 2008 nearing USD90/barrel. Argentine dryness is already causing concern with little more than half the crop in the ground.


Dec corn rose 17 3/4 cents to USD5.58 1/2; March corn rose 18 cents to USD5.73 1/2. The weak dollar and rising crude oil price also helped corn, as too did spillover support from resurgent wheat. Corn bulls should be mindful that the problems in Australia could actually be negative for US corn demand into Asia. The dryness problems in Argentina raise concerns over the corn crop as well as soybeans, in what is the world's second largest exporter of the grain. Unlike soybeans corn planting in Argentina is ahead of last year at 81% complete, versus 77% this time a year ago.


CBOT March wheat ended up 30 1/2c at USD7.79 a bushel; KCBT March wheat rose 20 1/4c to USD8.22; MGEX March wheat climbed 22c to USD8.35 1/4. Wheat posted strong gains on all three exchanges as the market starts to catch onto the fact that before too long there's maybe only going to be one quality wheat shop left open - the US. Eu exports are flying out, and Australia's wheat crop seems to be deteriorating on a daily basis. Argentina will have a better wheat crop this year, but much of their surplus is likely to go to neighbouring Brazil.