Grains choppy heading into Thursday
Despite continued bullish signals from factors like continued rain in Argentina, anxieties about macro-level issues such as the so-called fiscal cliff are seeping into the grains and will likely cause a more choppy, unsteady trade Thursday after a higher day Wednesday.
Early calls for the grains are corn 1 to 3 lower, soybeans 1 to 3 higher, and wheat 1 lower to 1 higher, according to private sources.
Just before 6:00 AM CST Thursday, the March corn futures contract was 1 cent lower at $7.56 3/4 per bushel, while January soybeans were 4 1/4 higher at $14.83 1/2, and March wheat was 1 1/2 higher at $8.61 1/2.
It's another day of a battle between macro and ag-specific factors. Rainfall in Argentina and word that Japan is buying more U.S. wheat are bullish, but resounding anxiety about macroeconomic issues like the "fiscal cliff" are causing traders to take a more cautious approach and could lead to light profit-taking Thursday after a higher day on Wednesday, analysts say, adding that Thursday's trade is more likely to resemble Tuesday's choppy, two-sided trade than Wednesday's rally.
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