Corn topples the $6 mark
CHICAGO, Illinois (Agriculture.com)--The Federal Reserve's $600 billion stimulus plan is pressuring the U.S. Dollar and pushing the CME Group grain markets sharply higher Thursday.
While the spot Dec. 2010 contract fell short of it, the 2011 corn futures contracts all traded over the $6.00 per bushel mark.
The Dec corn futures settled 9 cents higher at $5.90. The Jan. soybean contract closed 37 1/4 cents higher at $12.74 3/4. The Dec. wheat futures settled 23 1/2 cents higher at $7.13 3/4. The Dec. soymeal futures contract ended $8.80 higher at $347.70 per short ton. The Dec. soyoil futures contract finished $1.35 higher at $51.26.
In the outside markets, the NYMEX crude oil is $1.93 per barrel higher, the dollar is sharply lower, and the Dow Jones Industrials are up 193 points.
"The markets are on a terror," one CME Group trader says. "It's a reaction to the Fed's quantitative easing measures. Some farmer-selling and fund-selling might slow the rally. But, you can't break the market until we know what the crop is. We'll get that information next Tuesday."
The CME Group floor trader adds, " The word is the costs of apples in China have jumped 30% in the past few months. It's now cheaper for China to buy apples from Washington, due to the weak U.S. Dollar. This is a sign of food inflation," he says.