Grains look to start Thursday higher
The grains spent the overnight trade on the higher side, and that strength is expected to spill into Thursday's trading session.
Early calls for the grains are corn 4-6 cents higher, soybeans 9-11 higher and wheat 6-9 higher, according to private sources. Overnight trading found March corn trading 3 1/2 cents higher at $6.04 3/4 per bushel, while January soybeans were 9 cents higher at $11.40 1/4 and March wheat was 7 1/2 cents higher at $6.03 1/4, according to Barchart.com.
It looks to be another volatile trading day Thursday, says ICAP Energy LLC Derivatives Manager Scott Shellady. Wednesday's action by world banks, including the U.S. Federal Reserve, to lower a key interest rate makes the U.S. Dollar cheaper, Shellady says, and heightens the grains' focus on the U.S. Dollar index moving forward.
"We need to keep an eye on dollar strength/weakness as we lurch from headline to headline," Shellady said Thursday morning.
Meanwhile, Goldman Sachs specialists said the outlook for corn prices is higher than corn and soybeans for the next few months. Despite slower ethanol growth and declining exports and domestic feed demand, Goldman sees corn prices as too low now "in the face of low corn inventories," according to a Dow Jones Newswires report.