Corn futures on the Chicago Board of Trade (CBOT) closed down on Monday. The DEC’12 contract closed at $7.180/bu; down 20.75 ¢ /bu and 36.0 ¢ /bu lower than last week at this time. MAR’13 corn futures closed at $7.222/bu; down 19.75 ¢ /bu and 15.75 ¢ /bu lower than a week ago. The DEC’13 contract closed at $7.102/bu; down 18.75 ¢ /bu but 76.0 ¢ /bu higher than a week ago, writes Michael T. Roberts.
Spillover pressure from soybeans and technical weakness weighed on prices. Pit sources also pointed to favorable grain production weather patterns emerging in South America as further pressure to price. Funds continued to liquidate bull positions on profit-taking/loss-curbing. Cash prices were sharply lower on Monday amid brisk farmer selling. Cash prices for corn remain firm on strong domestic demand. The national average basis is - 9.0 ¢ /bu under CBOT December futures. It is still a good idea to think about pricing up to 10% of 2013 production. Remember also to lock in the corresponding input side as well.
SOYBEAN futures on the Chicago Board of Trade (CBOT) closed down on Monday. NOV’12 futures closed at $14.110/bu; down 41.0 ¢ /bu and 93.25 ¢ /bu lower than last report. The MAR’13 contract closed at $13.880/bu; down 48.5 ¢ /bu and 94.5 ¢ /bu lower than a week ago. NOV’13 futures closed at $12.856/bu; off 34.0 ¢ /bu and 48.75 ¢ /bu higher than last Monday. Soybeans were pressured heavily by news from South America that growing conditions were much improved. Selling drove the January contract through all technical support despite soybeans being oversold. Basis strengthened somewhat with the latest national average soybean basis being placed at -35.0 ¢ /bu under the Chicago November futures contract. It might be a better idea to hold off pricing any more of the 2013 crop at this time.
WHEAT futures in Chicago (CBOT) closed down on Monday. DEC’12 wheat futures finished at $8.576/bu; down 28.75 ¢ /bu and 8.5 ¢ /bu lower than a week ago. The JULY’13 contract closed at $8.604/bu; down 28.0 ¢ /bu and 13.75 ¢ /bu lower than last report. Recent strength fizzled on Monday. Contracts on all three wheat exchanges were lower. Chart support was noted. Wheat’s national average basis was placed at -31.0 ¢ /bu under CBOT December futures. Hard Red Winter Wheat was placed at - 48.0 ¢ /bu under Kansas City December futures. Hard Red Spring Wheat national average basis was placed at -59.0 ¢ /bu under the Minneapolis December futures contract. Still might be a good idea to price up to 10% of the 2013 crop.
