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Corn closes at $5.21, beans $11.26

Updated: 09/24/2010 @ 3:17pm

CHICAGO, Illinois (Agriculture.com)--At mid-session, the CME Group grain markets shoot 'to the moon' Friday.

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.

Dax Wedemeyer, U.S. Commodities grain 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. 

Wedemeyer adds, "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."

Jack Scoville, PRICE Futures Group, agrees the outside markets are helping push up the grain prices. "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 per bushel, Scoville says.

"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."

Meanwhile, the corn market is also up on the same stuff, he says.

"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," Scoville says.

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