Grains start higher; is the bottom in?
The grain market's strength in late trading Wednesday and the overnight session has fueled a strong start to Thursday's session, with corn, soybeans and wheat all trading higher. And now, some speculate that maybe the bottom is in for the grains.
At the open, March corn is 2 1/2 cents higher at $6.03 3/4 per bushel, while January soybeans are 7 3/4 higher at $11.39 and March wheat is 4 3/4 cents higher at $6.00 1/2.
Those price points are important, says market analyst Alan Kluis. If prices can remain in those ranges, it could mean a bottom is in.
"Watch to see if December Corn can close over $6.02, January Soybeans above $11.30 and December CBOT wheat above $6.00," Kluis says. "Closing above these resistance levels would confirm an important low in the grain markets, indicating prices are on their way back up."
Adds Agriculture.com Marketing Talk frequent contributor sandiego77: "The key to the grains was that there was no 'Turnaround Tuesday' downside, thus they were ready to go up yesterday on any good news...the bottom in grains looks like it is in. Now of big importance will be the fund flows in or out of the grains as we approach year end and the U.S. Dollar."