At the close:
The Dec corn futures settled 22 1/2 cents higher at $5.21 3/4. The Nov. soybean contract ended 32 1/2 cents higher at $11.26. The Dec. wheat futures closed 22 3/4 cents higher at $7.20. The Dec. soyoil futures ended 99 points higher at $44.89. The Dec. soymeal futures closed $7.50 per short ton higher at $317.00.
In the outside markets, the NYMEX crude oil is $1.27 per barrel higher, the dollar is sharply lower, and the Dow Jones Industrials are up 176 points.
The investors were selling the dollar and buying commodities, traders say. The fund money is definitely in the market, in a big way. One trader told me he bought 700 corn contracts, alone. That's 3.5 million bushels of corn.
Trader quote of the day: "This market is no longer a price-discovery vehicle. This is an investment vehicle."
The trader made that statement, after telling me the California State Teachers Retirement System is being advised to invest $2.5 billion in commodities over the next three years. As if there wasn't enough 'outside' money in this grain market. WHEW!! Hold on to your hats!
Mike
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At mid-session:
The Dec corn futures are 17 cents higher at $5.16 1/2. The Nov. soybean contract is 29 cents higher at $11.22 1/2. The Dec. wheat futures are 10 1/4 cents higher at $7.07 1/2. The Dec. soyoil futures are $1.02 points higher at $44.92. The Dec. soymeal futures are trading $5.10 per short ton higher at $314.60.
In the outside markets, the NYMEX crude oil is $1.18 per barrel higher, the dollar is sharply lower, and the Dow Jones Industrials are up 168 points.
Mike
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At 10:30am:
One analyst says the grain rally is being sparked by very supportive outside markets. "Those markets are very commodity-friendly. The crude is up, the dollar is getting hammered again. It broke support levels. This feeds into the thought that export sales will continue to strengthen, especially to China. This is really helping the bean market. For corn, after a 30¢ setback, you're looking at a bounce-back. We're still hearing low corn yield reports. Plus, with wet weather delaying harvest, the meat of the Midwest, where good yields are to be coming in, is on the sidelines. So, no bearish news is being heard."
Yet another take on the market by a separate trader, "I think we are higher today in part on the lower dollar and in part on all of the rain that moved through Minnesota and Wisconsin yesterday and produced all of that flooding. Nov soybeans broke out of a little flag pattern that implies a move to 11.17-11.18, but the market already seems to be running out of steam. The target level is also the bottom of a gap left months ago. So, we could possibly give that a test today. Corn is also up on the same stuff. Corn is really not doing anything for me chart wise. Wheat up on the US Dollar, but struggling with ideas of weaker demand. Specs have been on the buy-side, some selling showing up from Brazil in beans now. I think mostly a spec trade in the corn both ways, although I hear of some pricing from users too."
Mike
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At the open:
The Dec corn futures are 8 3/4 cents higher at $5.08. The Nov. soybean contract opened 11 cents higher at $11.04 1/2. The Dec. wheat futures opened 9 1/4 cents higher at $7.06 1/2. The Dec. soyoil futures opened 75 points higher at $44.65.
In the outside markets, the NYMEX crude oil is $1.05 per barrel higher, the dollar is lower, and the Dow Jones Industrials are up 184 points.
Mike
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At 7:45am:
So, Dec. corn has put on $1.80 in 12 weeks, topping at $5.23 on Monday. Mighty impressive. One trader says he's watching, today, to see if corn can close above Thursday's low of $4.95 per bushel. Reader, what say you?
It does look like the overnights support corn. And I'm looking at rain right now in Chicago. So, Chicago traders are thinking rain slowing harvest. For the harvest that does take place over the weekend, traders are expecting more lower yield reports.
Mike
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At 7:25am:
--A global vegetable oil expert sees world soybean prices reaching $12 in December-January period.
--Russis'a agricultural output is seen dropping 10%, due to drought problems, according to that country's Deputy Prime Minister.
--Australia has raised its 2010-11 wheat output.
--FWIW: A Russian diplomat is saying North and South Korea are on the brink of war. Among that being a sad scenario for those people, would that affect corn prices?
Mike
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At 7:05am:
Early calls: Corn up 4-6 cents, soybeans up 7-9 cents, and wheat up 8-10 cents.
Trackers:
Overnight grain=Trading higher.
Crude oil=Trading $0.21 per barrel higher.
Dollar=Trading lower.
Wall Street= Seen opening higher off of a stronger German business sentiment report. Investors await more U.S. reports today.
World Markets=Mixed.
More in a minute,
Mike
