Grain markets rally to close higher
CHICAGO, Illinois (Agriculture.com)--An end of the day rally closes off the CME Group markets Wednesday. First, wheat prices turned higher and then corn and soybean markets followed.
The Dec corn futures finished 6 1/4 cents higher at $5.77 1/4. The Nov. soybean contract closed 4 3/4 cents higher at $12.23 3/4. The Dec. wheat futures closed 10 3/4 cents higher at $7.02 3/4. The Dec. soymeal futures contract finished $0.40 higher at $335.90 per short ton. The Dec. soyoil futures contract ended $0.07 higher at $49.60.
In the outside markets, the NYMEX crude oil is $0.61 per barrel lower, the dollar is higher, and the Dow Jones Industrials are down 86 points.
In reviewing this week's market action, plus looking forward, Tim Hannagan, PFGBest.com grain analyst, sees more downside yet this week.
"After Monday's high, corn was pulled down $.16, beans $.15 and wheat $.21 into Tuesday's low. Buying came back in late Tuesday. That's half the profit-taking we saw on the third week pullback. There's still room for more downside," Hannagan says.
He adds, "But remember, no one wants to sell short in this bullish environment, only take profits off rallies. If we're going to have a bigger post harvest correction it can't occur until after the November 9 crop report that is feared to be bullish. Our goal this week or after November 1 is to find a dip in prices to get long ahead of the November 9 USDA crop report."