Rate cut sends grains skyward
Early calls were for slightly higher grain prices Wednesday. Then, in stepped the Fed.
After the U.S. Federal Reserve Bank and other world banks agreed to cut a key interest rate for bank fund transfers, markets around the world took off. That includes the grains.
In early trading, December corn is trading 10 cents higher at $6.08 per bushel, while January soybeans are 15 cents higher and December wheat is 13 cents higher, according to Barchart.com.
Just as in the last few days, these outside markets will likely drive the grains for much, if not all, of Wednesday's session. And, all indications this morning point to a higher trade all day: The Dow Jones Industrial Average was 422 points higher early in the session, while the U.S. Dollar index fell sharply and crude oil futures surged just over 1%.