Grains poised for sharp rally Tuesday
On Tuesday, follow-through from strong overnight trade is expected to help a firmer start for the CME Group's corn, soybean, and wheat markets.
Tight supplies, weakening NASS crop conditions, and differing opinions on crop-weather for the final weeks of July are supporting a rallying market.
The early calls for the commodities on Tuesday, July 16, 2013, are sharply higher. Corn is seen opening 12 to 14 cents higher, soybeans 20 to 22 cents higher, and wheat 8 to 10 cents higher.
In overnight trading, the Sept. corn futures contract traded 12 cents higher at $5.48 per bushel. Dec. corn futures traded 14 cents higher at $5.17 per bushel. Aug. soybean futures traded 23 cents higher at $14.76, while the Nov. soybean futures traded 20 cents higher at $12.84. The Sept. wheat futures contract traded 10 cents higher at $6.80. For Dec. soybean meal futures, the contract traded $9.10 per short ton higher at $386.00; Dec. soybean oil futures traded 17 cents higher at $45.45.
The outside markets are favorable for Tuesday's grain trade. The real factors driving the calls will be the higher overnight markets.