Grains look to start Tuesday higher
The bullish momentum derived from Monday's USDA Crop Production and WASDE reports carried over through the overnight trading session and looks to continue at least into the early stretches of Tuesday's open-outcry session.
As of 6:00 a.m. Central Time Tuesday, December corn was 2 1/4 cents higher at $4.66 1/4 per bushel, November soybeans were 13 3/4 higher at $12.39, and December corn was 3 1/4 higher at $6.52 1/4, according to Barchart.com.
The upward trend is seen as likely to continue for some time, one analyst says. Monday's monthly USDA data showed lower projected corn and soybean crops, while the agency's weekly Crop Progress report indicated that while conditions remain relatively favorable, both crops are late in their development. Combined, those projections could give the grains a jolt of bullish life for a while, says Al Kluis of Kluis Commodities.
"I think that December corn put in an important low yesterday at $4.46 [per bushel]," Kluis says Tuesday morning. "In the overnight grain market, U.S. grain prices are higher again."
Moving forward, a critical variable will lie in Mother Nature's hands. Kluis says his attention's squarely on rainfall potential in the areas where it's most needed.
"I am waiting to see if the dry areas of Iowa that missed the weekend rains get rain yet this week," he says.