CBOT Closing Comments

Posted by Nogger - a legend in his own mind at 23:20 | Categorized as

13/06/11 -- Soybeans: Jul 11 soybeans closed at USD13.82 3/4, down 4 1/2 cents; Nov 11 soybeans closed at USD13.76 3/4, down 5 cents; Jul 11 soybean meal closed at USD370.10, down USD3.20; Jul 11 soybean oil closed at 56.82, down 3 points. A Reuters poll pegged soybean planting at 82% in this afternoons Crop Progress report, in fact it came in at 87% done. Dry weather in Ohio saw that laggard state leap from 26% complete to 77% in just one week. Soybean crop conditions at 67% good/excellent are down on last year but better than anticipated. Crude closed more than USD2/barrel weaker adding to the bearish tone.

Corn: Jul 11 corn closed at USD7.82 1/2, down 4 1/2 cents; Dec 11 corn closed at USD7.04 1/2, down 8 cents. The USDA Export Inspections report this morning came in at 32.084 million bushels, well below what is needed to meet the existing forecast for 2010/11 exports. An assortment of outside influences weighed on corn such as European debt, weak crude oil and a negative vibe for the global economy. The USDA pegged the corn crop at 99% complete, a pretty astonishing figure with sowings in Ohio jumping from 58% done last week to 97% finished as of Sunday night. Crop condition ratings are put at 69% good/excellent, down on last year's 77%, but pretty impressive nevertheless.

Wheat: Jul 11 CBOT wheat closed at USD7.43, down 16 1/4 cents; Jul 11 KCBT wheat closed at USD8.51, down 17 cents; Jul 11 MGEX wheat closed at USD9.85 1/4, down 14 3/4 cents. Wheat has derived some benefit of late from the notion that historically high corn prices, and the unusual corn premium to wheat will lead to increased wheat demand from a feed perspective. Falling corn prices today where therefore seen as negative for wheat. Weekend rains and the chances for more later in the week saw EU futures fall, reinforcing the notion that US wheat is overpriced. The USDA pegged the winter wheat harvest at 22% done, versus 10% last week and 13% normally. Good/excellent conditions improved one point to 35% and spring wheat plantings rose to 88% done, up 11 points although things are normally all over by now.