Drought sends grain markets higher
With drought concern spreading in South America, along with a weaker U.S. dollar, the CME Group corn, soybeans and wheat prices will see a higher start Monday.
The Early Calls for the commodities on Monday, January 9, 2012, are higher. Corn is seen opening 8-9 cents higher, soybeans 9-11 cents higher, and wheat 10-12 cents higher.
In overnight trading, the March corn futures contract traded 7 1/2 cents higher at $6.51 per bushel. March soybean futures traded 9 3/4 cents higher at $12.06 1/4 per bushel, and March wheat traded 10 cents higher at $6.34 3/4. For March soybean meal futures, the contract traded $1.20 per short ton higher at $313.60. March soybean oil futures traded $0.64 higher at $51.76.
The outside markets are favorable for Friday's grain trade. The real factors driving the calls will be the higher overnight markets.