Home / Markets / Markets Analysis / Corn market / Grain prices end sharply higher

Grain prices end sharply higher

06/08/2011 @ 9:38am

CHICAGO, Illinois (Agriculture.com)--The CME Group grain and soybean prices closed sharply higher Wednesday, ahead of what the trade feels will be a bullish USDA Supply/Demand Report Thursday.

USDA will release its June Supply/Demand and World Production Reports at 7:30am CDT on Thursday. 

The July corn futures settled 27 1/2 cents higher at $7.64. The July soybean contract closed 7 1/2 cents higher at $14.01 1/2. The July wheat futures closed 14 1/4 cents higher at $7.48. The July soybean meal futures ended $4.80 per short ton higher at $372.80. July soyoil closed $0.01 higher at $57.49.

In the outside markets, the NYMEX crude oil is $1.88 per barrel higher, the dollar is higher and the Dow Jones Industrials are down 6 points.

Corn pushed higher off of positioning ahead of Thursday's USDA Report. That report is expected to show that the U.S. corn supplies are dwindling. This helped wheat prices go higher, as that commodity become competitive with corn in the feed sector.

Folks are trying to get long this market, ahead of tomorrow's USDA Report, Tom White, a CME Group corn pit trader with FutureRoad.net,  says. "That's exactly right. Someone (maybe Goldman Sachs) has reportedly been buying at every dip. They must know report is bullish. Otherwise, why be this active ahead of the report?"

Meanwhile, Tim Hannagan, PFGBest.com senior grain analyst, agrees that investors are trying to position themselves ahead of tomorrow's government data. "The market fears a bullish surprise in corn for Thursday's crop report. The thinking is the government knows how many acres were flooded out of corn along the Mississippi River area. It's believed the government knows this information, as they received the planting intentions of those acres, prior to the March 31 Planting Intention Report, and they can report on those acres Thursday," Hannagan says.

Hannagan adds, "Should they (USDA) know that 1-2 million acres are not going to be planted then that production will come off the 2012 ending stocks." 


CancelPost Comment
MORE FROM MIKE MCGINNIS more +

Soybeans Close 13¢ Lower Tuesday By: 11/18/2014 @ 8:37am DES MOINES, Iowa (Agriculture.com)—Acting like a ‘turnaround Tuesday’, the CME Group soybean…

Soybeans Seen Slightly Higher Tuesday By: 11/18/2014 @ 6:36am On Tuesday, the CME Group's corn, soybean, and wheat markets are expected to start mostly…

Soybeans Close 13¢ Higher Monday By: 11/17/2014 @ 8:48am DES MOINES, Iowa (Agriculture.com)—On Monday, the CME Group soybean market closed higher, with…

MEDIA CENTERmore +
This container should display a .swf file. If not, you may need to upgrade your Flash player.
Cool Tools Christmas Edition: Part 2