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Senior Contributor

Floor Talk from the B-Team, 10/20

At the close:

 

What a day! At the close, the December 2010 corn futures contract ended 27 1/2 cents higher at $5.73 1/2 per bushel, while November soybeans were 32 cents higher at $12.12. December wheat ended 11 1/2 cents higher at $6.83 per bushel.

 

Read more on the big day for corn.


Many anaylsts say a reversal of the U.S. Dollar index -- which had been showing signs of major strength in the past few days -- is largely behind Wednesday's rally in the grains. There was also more commercial and speculative buying as prices broke, as well as some growing speculation about the 2010 crops as harvest winds down, both of which helped buoy the grains.

 

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At 12:45:

 

Look out up there! Corn and soybeans are up sharply -- 22 1/2 higher for Dec corn and 28 1/2 for Nov beans -- and they're taking corn for the ride (up 10 3/4). Here are all the latest prices.

 

Sounds like export demand, at least for soybeans, is overshadowing everything else today. Well, that, and the Dollar's weakened a bit this morning. Still, one analyst says in a wire report that "Continued global soybean consumption coupled with a weaker U.S. dollar are benefiting soybean futures uptrend, with demand outweighing any talk of higher crop outlooks."

 

Here's that full report on soybean futures.

 

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Seems like there's not a ton of new news this morning in the trade, but it looks like there could be a big reversal from the last 2 days of sliding prices. Early calls are:

 

  • Corn: 7-9 cents higher
  • Soybeans: 11-13 higher
  • Wheat: 3-5 higher

 

As of 7:00 AM CST, the overnight trade sent December 2010 corn futures 9 1/2 cents higher to $5.55 1/2 per bushel, according to Barchart.com. November soybeans were 14 cents higher at $11.94 per bushel, while December wheat was 4 3/4 per bushel at $6.76 1/4.

 

Are we see-sawing or is there more to today's move? I'll "run the traps" as Marketeye says, and try to find out!

 

Jeff


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