August 28, 2010

The CME Group grain prices become higher Thursday (Aug 26) because of strong demand and support from outside markets.

The December corn futures settled US$0.12 higher at US$4.32. The November soy contract closed 15 1/2 cents higher at US$10.15 3/4. The December wheat futures closed 8 cents higher at US$6.88 1/2. The December soy meal futures contract settled US$6.30 per short tonne higher at US$297.90, and December soyoil up 36 points at US$40.08.

In the outside markets, the NYMEX crude oil is US$0.82 per barrel higher, the dollar is lower, and the Dow Jones Industrials are down 72 points.

Tim Hannagan, a senior analyst, says, "After month-end profit-taking, the first three days of the week, we see some re-entering of longs as the weekly export sales report out prior the open showed again very strong exports of all three grains. This is suggesting the September 10 USDA crop report may again raise export projections and lower ending stocks for the grains. The harvest is beginning in the southern Delta and southern Illinois, and Indiana, where the hottest driest conditions of the year prevailed. So, expect early harvest results to show the lowest yields."