Corn rallies on overdone market
DES MOINES, Iowa--With the market 'overdone' to the downside, the infamous 'Turnaround Tuesday' happened on Wednesday.
The Dec. futures corn contract settled 16 cents higher at $7.56 1/2. Nov. soybean futures contract finished 29 1/2 cents higher at $16.69. Dec. wheat futures finished 18 cents higher at $8.81 1/2 per bushel. The Dec. soyoil futures contract settled $0.92 higher at $56.25. The Dec. soymeal futures contract closed $8.30 per short ton higher at $500.30.
In the outside markets, the NYMEX crude oil is $3.45 per barrel lower, the dollar is lower and the Dow Jones Industrials are 46 points higher.
Joe Bedore, FC Stone Inc.'s CME Group floor manager, says the corn market is overdone to the downside, one floor trader says.
"So, a rally occurred on Wednesday rather than Tuesday. Plus, technically, this blows people out of the water. We were looking at $7.41 3/4 as a resistance price and we blew right threw that. So, people are now confused about this market, I'm sure," Bedore says. Bedore adds, "This tells me that we are in for higher prices. Why? When we take $1 off of the market, a buyer shows up. These breaks should be bought," he says.