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Farm markets shoot higher

06/21/2011 @ 10:36am

DES MOINES, Iowa (Agriculture.com)--After a weaker trade to start the week, the CME Group grain and soybean markets have responded with 'Turnaround Tuesday' characteristics. Also, macroeconomic factors are favorable for grain commodities. 

In early trading, the July corn futures are 14 1/2 cents higher at $7.15. The July soybean contract is trading 12 1/2 cents higher at $13.48 1/4. The July wheat futures are 12 cents higher at $6.71 1/4. The July soybean meal futures are trading $2.10 per short ton higher at $352.10 and July soyoil futures are trading $0.53 higher at $56.55.

In the outside markets, the NYMEX crude oil is $0.57 per barrel higher, the dollar is lower and the Dow Jones Industrials are up 98 points.

Tim Hannagan, PFGBest.com senior grain analyst, says there are several issues driving the markets higher, 'Turnaround Tuesday' being one of them. "The condition report Monday was bullish, when broken down. Corn in IL, PA, TX, MN, ND & SD all declined with IA unchanged. Beans saw declines in IL, IA, MN, SD, and WI.," Hannagan says.

 What happened to 'rain makes grain', he says. "It's been too wet, but that’s changing to talk of getting too hot in the western Corn Belt and the drought continuing in the Southwest. There's no real progressive news on the weather."

New sales to Japan and South Korea are supporting the grain prices Tuesday, Hannagan says. "Japan is in recovery from their disaster and with ports in full operation. It's business as usual now and they are playing catch up. The condition report is getting this closer look. Because prices are so low, if we were up a dollar the report would be bearish," he says.

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