Grains shoot higher in early Wednesday trading
The last 2 days' losses are being recovered in early trading in the CME Group grains early in Wednesday's session.
Shortly after the open, the December 2010 corn futures contract traded 12 cents higher to $5.58 per bushel, according to Barchart.com. November soybeans shot up 18 cents to $11.98 per bushel, while December wheat was 7 1/4 higher at $6.78 3/4.
Much of Wednesday's jump has more to do with consolidation of positions on the trading floor in view of very little fresh news as anything, says CME options trader, GFI Group ag products manager and Bradford Capital Management CEO in Chicago, Scott Shellady.
"Looks as though we are going to have a little boomerang effect on the opening with the dollar losing some of its ground grains will make back some of theirs. I wish it was as simple as that but with the weather OK and no new bullish news on the horizon I am skeptical of the ability for us to stay bid," he says in Marketing Talk Wednesday morning. "Like I said yesterday we have a higher likelihood of consolidation for the next few weeks than anything else. Dollar is weaker so stay out of the way on the open and let the sheep do their thing."