Higher farm markets to start Wednesday
DES MOINES, Iowa (Agriculture.com)--On Wednesday, the CME Group corn, soybean and wheat markets are seen higher.
The early calls for the commodities on Wednesday, February 26, 2013, are higher. Corn is seen opening unchanged to 1-2 cents higher. Soybeans are seen 7-9 cents higher and wheat 3-5 cents higher.
In overnight trading, the March corn futures contract traded unchanged at $7.05 per bushel. March soybean futures traded 7 cents higher at $14.55 per bushel, and March wheat traded 5 cents higher at $7.11. For March soybean meal futures, the contract traded $1.90 per short ton higher at $429.60. March soybean oil futures traded $0.33 cents higher at $49.35.
The outside markets are favorable for Wednesday's grain trade. The real factors driving the calls will be the higher overnight markets.
Jeff Coleman, Trean Group analyst and CME Group pit trader, says the market may be looking at a 'dead cat bounce'.
"Is this another “dead cat bounce” that will collapse once the day session begins? The grains seem to be in a holding pattern with not much happening to move this market until the USDA crop production and supply and demand report coming out March 8th," Coleman says. The equity markets should be active today as Ben Bernanke wraps up his two days of testimony before Congress, he says.
Durable goods figures come out at 8:30 AM ET and new home sales numbers are released at 10:00 AM ET as well. "And who can forget about the upcoming March 1st deadline to figure out the sequestration mess," Coleman asks.