Corn poised for a rally
As the outside markets and overnight grain markets turn favorable, the coast is clear for a sharp rally on the CME Group's grain floor Tuesday.
The Early Calls for commodities are sharply higher Tuesday, September 27, 2011.
The pre-opening prices for corn and soybeans are seen 10-12 cents higher, and wheat 12-14 cents higher.
In overnight electronic trading, the Dec. corn futures contract traded 12 1/4 cents higher at $6.60 1/4 per bushel. The Nov. soybean futures contract traded 13 3/4 cents higher at $12.73 1/2 per bushel. The Dec. wheat futures contract traded 13 cents higher at $6.61 1/4. For Dec. soymeal futures, the contract traded $5.10 per short ton higher at $335.30 and Dec. soyoil $0.55 higher at $52.95.
The outside markets are very supportive for Tuesday's grain trade. The real factors driving the calls are the sharply higher overnight markets.
With the fundamentals and macroeconomics lining up, the corn market could be poised for a rally between 30-50 cents before the next downward revision, one market analyst says.