CBOT Closing Comments

Soybeans

July soybeans closed at USD9.41, down 3 cents; July soymeal ended USD0.60 lower at USD275.60; July soyoil settled 0.43 cents lower at 36.96. Private exporters announced the sale of 120,000 MT of U.S. soybeans to China for 2010/11 delivery. An expected vote on the USD1/gallon biodiesel tax credit has been pushed by to Tuesday. If voted back in it should boost soybean demand, as the industry has struggled to survive without it. US soybean plantings are well advanced, and the harvest in South America is winding down yet we haven't seen too much pressure on spor prices as yet.

Corn

July corn closed at USD3.69, up 7 cents; Dec corn was at USD3.85 1/4, up 6 3/4 cents. The USDA announced that China had bought another 118,000 MT of US corn for 2009/10 delivery. China's new found interest in importing corn is supporting the market. The Chinese government will auction off more of it's state reserves next Tuesday. The Argentine harvest is estimated at 65% completed compared with 85% for last years drought stricken crop. The USDA say that production this year will come in at 21 MMT, up 40% from 15 MMT a year ago.

Wheat

July CBOT wheat closed at USD4.72, up 1 1/4 cents; July KCBT wheat closed at USD4.95, up 2 1/2 cents; July MGEX wheat closed at USD5.14 1/2, down 1/4 cents. Pre-weekend short covering led to some modest gains, but US wheat is still largely overpriced due in no small part to the strength of the dollar. Argentine wheat planting is underway, with an increased area of 10-12% being forecast by the ministry. That isn't as big a switch back into wheat as many private forecasters have been predicting.