Weather to push up soybeans, wheat
For Tuesday, the CME Group corn, soybean and wheat markets are expected to trade higher. Technical signals favor the corn market. South American weather concerns support soybeans and European and U.S. weather concerns have wheat pushing higher.
The early calls for the commodities on Monday, January 22, 2013, are higher. Corn is seen opening 5-7 cents higher. Soybeans are seen 17-18 cents higher and wheat 2-3 cents higher.
In overnight trading, the March corn futures contract traded 5 cents higher at $7.33 per bushel. March soybean futures traded 18 cents higher at $14.47 per bushel, and March wheat traded 5 cents higher at $7.96. For March soybean meal futures, the contract traded $4.40 per short ton higher at $418.80. March soybean oil futures traded $0.74 cents higher at $52.42.
The outside markets are favorable for Monday's grain trade. The real factors driving the calls will be the higher overnight markets.
Tom White, FutureRoad.net and CME Group corn pit trader says the market could be technically poised to move higher this week.
"Several pattern(s) suggest the potential for higher price action, despite how we held at/near technical bearish lines last week. The 60-minute chart shows a market which flattened out after an impulsive move higher. This is generally indicative of a market which is “pausing” before making another move in the direction of the initial move. Secondly, the market turned from higher prices at lower values which is usually a bullish sign on positive reversals," White says.