Wheat leads Turnaround Tuesday
Wheat led the charge Tuesday as all major grains closed out Tuesday's CME Group trade sharply higher.
At the close, March corn was 7 1/4 cents higher at $6.39 per bushel, March soybeans were 13 3/4 higher at $11.99 and March wheat was 21 1/4 cents higher at $6.66, according to Barchart.com.
Tuesday's turnaround came after sharply lower prices Monday, which stoked demand both at home and on the export market, with the latter especially strong based on the weaker U.S. Dollar Index Tuesday, according to a Dow Jones Newswires report. Those conditions sent barge and cash basis levels higher as well. The strength in the wheat market was also fueled by weather concerns in the Black Sea region, where some freezing and frosting has occurred in the last few days.
- Grain Review: Wheat soars on weather worries, Russia
- Read more: Corn, soybean basis bids rebound
- See more of the latest crop & livestock futures prices
- Marketing Talk: Corn & soybean 'fast spurts hard on the psyche'
Meanwhile, the local news is fairly light for a lot in corn and soybean country. The weather remains on the warm and dry side, with many temperatures breaking records in parts of the western Corn Belt on Monday. It's a time when many in the business are already starting to look forward to the late-March USDA Planting Intentions report, which will likely have a lot to do with price direction heading into spring and summer.
"I think a lot of folks have 'market whiplash' and it's not even February just yet," says Cargill senior grain merchandiser and Agriculture.com Marketing Talk veteran contributor Ray Jenkins. "These fast spurts, both up and down, are hard on the psyche. I suspect there are a lot pricing objectives near $7, but unless you are in the black hole of central Illinois and eastward, that number is a long ways off...and likely not to come without more news, which is most likely in the late March reports."