Outside markets help grain prices
As the U.S. Dollar weakens, the outlook for the CME Group corn, soybean and wheat prices strengthens Thursday.
However, weak export sales could cap gains.
The Early Calls for the commodities on Thursday, December 15, 2011, are higher. Corn is seen opening 2-4 cents higher and soybeans 7-9 cents higher, and wheat up 6-8 cents.
In overnight electronic trading, the March corn futures contract traded 2 1/2 cents lower at $5.83 1/4 per bushel. The Jan. soybean futures contract traded 7 1/4 cents higher at $11.07 1/4 per bushel. The March wheat futures contract traded 6 1/2 cents higher at $5.87 1/4. For Jan. soymeal futures, the contract traded $0.30 per short ton higher at $282.50 and Jan. soyoil $0.19 higher at $48.59.
The outside markets are favorable for Thursday's grain trade. The real factors driving the calls will be the higher overnight markets.
USDA released Weekly Export Sales Thursday. For corn exports, USDA estimates sales at 505,900 metric tons, barely ahead of the trade's estimate of 500,000 metric tons (mt). Soybean exports were estimated at 468,600 mt, below the trade's estimate of 500,000 mt. USDA recorded wheat exports at 318,400 mt, below the trade's estimate of 350,000 mt. Soymeal exports were recorded at 107,300 mt, with the trade estimates at 100,000 mt.