FACTOID: Wheat put in its biggest gain for one month since 1973, during this past month of July, 2010.--Louise Gartner, wheat analyst says.
Mike
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At the close:
The Dec corn futures settled 13 cents higher at $4.06 3/4. The Nov. soybean contract finished 17 cents higher at $10.05. The Sep. wheat futures settled 34 cents higher at $6.61.
In the outside markets, the NYMEX crude oil is $0.45 per barrel higher, the dollar is lower, and the Dow Jones Industrials are down 27 points.
A lot of records broken today. "The fundamentals are in place to move these markets in dollars, one analyst says. Farmers are apparently aggressively selling corn, soybeans and wheat, new and old-crop. They are trying to lock in some of these profits. With projections of $5.00 corn, $12 soybeans, and much higher wheat ahead, farmers could be leaving $200-$300 per acre (CORRECTION: This originally read 'per bushel' and should have read 'per acre') on the table, by selling now," the broker/analyst says. "This kind of market separates the men from the boys, the women from the girls," he says.
Mike
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At mid-session:
What a rally!! At mid-session, the Dec corn futures are 7 1/2 cents higher at $4.01 1/4. The Nov. soybean contract is 10 cents higher at $9.98. The Sep. wheat futures are 25 1/4 cents higher at $6.52 3/4.
In the outside markets, the NYMEX crude oil is $0.32 per barrel lower, the dollar is lower, and the Dow Jones Industrials are down 8 points.
Mike
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At 10:40am:
Can this market handle even more bullish news??? Now, there is a new weather model that shows a Midwest heat dome could set up next week. The heat dome is expected to start about Wednesday. I know, I know, they said this same thing a few weeks ago and it didn't really materialize. But, wow, you talk about the 'running of the bulls'. The market is just as bullish, if not more, than it was bearish about a month ago, one analyst says.
Mike
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At 10:22am:
One analyst says, "Today's action is more follow-through from what's been happening the last few weeks. European wheat continues to move higher on crop-loss issues, mounting higher production losses in the former Soviet Union and Black Sea areas. Consequently, you have a lot of spec buying coming into the market, end-users are trying to decide to cover their needs, resulting in a push-up in prices.'
He adds, "It's starting to change some of the relationships between corn/wheat and corn/beans. For example, before the rally started, the difference between Dec. corn/Dec. wheat $1.50 where wheat was over corn. Today, you have a difference between Dec. corn/Dec. wheat at $2.80. Wheat has gained a spread on corn by about $1.50. So, what you are seeing is a shift in demand from corn to wheat."
Mike
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At the open, the Dec corn futures are 3 1/4 cents higher at $3.97. The Nov. soybean contract is 6 1/2 cents higher at $9.94 1/2. The Sep. wheat futures are 9 1/4 cents higher at $6.36 3/4.
In the outside markets, the NYMEX crude oil is $1.03 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 13 points.
Sorry for the delayed reporting this morning. I had a bad cup of coffee.
Mike
