Grains ride outside factors higher
The grain markets finished Tuesday's trading session higher, with wheat posting gains of nearly 20 cents/bushel.
At the close, the December corn futures contract was 6 1/4 cents higher at $5.91 3/4 per bushel, while December wheat ended 19 3/4 cents higher at $5.74 3/4, according to Barchart.com. January soybeans ended the day 4 cents higher at $11.25 per bushel.
Tuesday's market action was based almost entirely on outside market factors; a lack of fresh fundamental news for the grains kept traders' focus on other bullish markets. In afternoon trading, the Dow Jones Industrial Average was 75 points higher, crude oil was hovering around the $100/barrel mark and the U.S. Dollar index was slightly lower, all bullish for the grains.
Does that mean the bearish trend of recent weeks has turned around? Though the last 2 days have been a welcome bounceback, it's not a sure thing yet, says ICAP Energy LLC Derivatives Manager Scott Shellady.
"We have seen some positive numbers, like today's consumer confidence numbers, but we still have a Euro Zone problem that has yet to be solved," he says. "Let's remember that the rally seen yesterday was off of seven straight days of selling on the DOW. We still have not been able to recoup those losses so lets not get too excited just yet."