Grains surge on demand, EU debt news
Though down from earlier double-digit gains across the board, the CME Group grains managed to close higher for first time in over a week.
December corn futures ended the day 8 1/2 cents higher at $5.91 per bushel, while December wheat finished 1/4 cent higher at $5.74 3/4, according to Barchart.com. Soybean shad the strongest day, posting a 17-cent gain to close at $11.23 1/2 per bushel.
Friendly outside market factors, like higher equities and crude oil prices and a lower U.S. Dollar index, helped push the grains out of the red. The Dow Jones Industrial Average traded 250-300 points higher throughout the day Monday. Analysts say some slightly more positive news surrounding the European debt situation was largely behind the macroeconomic bullishness. Leaders at the International Monetary Fund (IMF) on Monday met to begin assembly of a rescue package for Italy, a step some say could stem the spread of the European debt crisis.
Keep an eye on global factors
More fundamental to the grains, demand -- both at home and abroad -- continues to put a floor under prices, and with the recent lull, some wonder whether that demand will perk up prices further, especially considering the recent trend of farmers holding tighter to grain supplies.
"I would have to think that the end users will be back buying these grains very soon," says Agriculture.com Marketing Talk veteran contributor roaringtiger1.
"I don't know, but myself, and a bunch of people I know have corn in the bin that doesn't have to move until July or August, and it seems like $6.50 is what it will take to get it moving," adds Marketing Talk member Nebrfarmr. "If the outside support holds, I think that might be what it takes."