Grain price surge rolls into Thursday
Wednesday's gains spilled into the overnight trade, and it's got corn, soybean and wheat prices poised for another morning of stronger opening prices.
Early calls for the grains are corn 7-10 cents higher, soybeans 15-18 higher and wheat 7-10 higher, according to private sources.
Word of potential fresh export demand for U.S. corn hit the CME Group trading floor on Wednesday, sending the grains to a higher close after 2 days of lower prices. That strength continued in the overnight trading session. As of 6:22 AM CST, the December corn futures contract was 7 1/4 higher at $7.63 per bushel, while December wheat was 8 1/4 higher at $8.72 3/4. January soybeans traded 20 1/2 cents higher to $15.69 1/4 per bushel.
Some traders have said for quite some time that though there's a clear shortage of grain in the pipeline after this year's drought, the trade had yet to factor that in to prices. After the last 2 days' trade, however, some farmers are starting to wonder whether that -- as well as the grain trade's coupling with the equities markets -- is changing.
"We could see things decouple," says Agriculture.com Marketing Talk senior contributor Mizzou_Tiger. "Grains are finally starting to get their mojo back...maybe some are waking to the fact supply isn't out there and demand hasn't been as silent as first thought."