Grain gains sharpen in late Thursday trading
Earlier gains spurned along by USDA's monthly Crop Production and world supply/demand reports released Thursday have sharpened, with corn, soybeans and wheat all trading sharply higher.
In late-session trading, December corn is 39 cents higher at $7.75 3/4 per bushel, while November soybeans are 37 3/4 higher at $15.61 and December wheat is 20 1/2 higher at $8.90 1/4.
The numbers released by USDA Thursday show corn stocks tightening on a lower harvest output this fall and demand that hasn't slowed enough to create much wiggle-room in supply chain, says U.S. Commodities broker and market analyst Don Roose.
"Harvest pressure was weighing on the market, and we didn't have any signs of rationing yet, so the government made the decision here and said we have a big enough supply that we don't have to ration," Roose says. "But, you have to keep prices high enough that you are going to ration to a certain degree. Do we have to make new highs? No. Does it have to press prices down? No. We'll see a big, broad trading range."
In an Agriculture.com poll Thursday morning, almost half of those farmers responding say they're "locking up my bins" and potentially holding off on grain sales in the near future based on USDA's reports Thursday morning and the subsequent market reactions.