Grains surge on export demand
A higher overnight trade has translated to an early CME Group trade Friday that's got corn, soybeans and wheat all in the black for the first time in 3 days.
In early trading, the December corn futures contract is 4 cents higher at $6.42 1/4 per bushel, while November soybeans are 7 cents higher at $12.64 and December wheat is 8 cents higher at $6.26, according to the CME Group.
Thursday's 900,000-ton sale of U.S. corn to China is just one of several sales over the last week that appears to be buoying corn prices Friday. But, more than that, traders are moving corn higher on anticipation of more corn sales on the export market to come.
For soybeans, on top of some spillover support from the corn trade, strength continues on the back of bullish outside markets as well as ongoing sentiments about a tightening domestic supply chain.
"While supplies can be tight, and demand firm, the macro economic picture will have an impact in the day to day pricing of our products. Maybe not at delivery, but the fund and speculative money has a major impact," says Scott Shellady, ICAP Energy LLC Derivatives Manager.