September 6, 2010

US grain markets surge higher

At mid-session on Friday (Sep 3), the CME Group grain markets staged a pretty impressive rally; pre-report positioning and strong demand support markets.

At mid-session, the December corn futures are 14 1/2 cents higher at US$4.62. The November soy contract is 24 1/4 cents higher at US$10.33 1/4. The December wheat futures are 18 1/4 cents higher at US$7.32. The December soyoil futures are 65 points higher at US$40.85. The December soymeal futures contract is US$0.67 per short tonne higher at US$302.80.

In the outside markets, the NYMEX crude oil is US$1.33 per barrel lower, the dollar is lower, and the Dow Jones Industrials are up 67 points.

Analyst Tim Hannagan said the soy, corn and wheat all started firmer on the opening. Like the last five weeks, lows for the week were made mid-week and traders are all focused on not whether this Friday's (Sep 10) report will be bullish or not but how bullish.

Meanwhile, the USDA announced bullish export demand Friday. USDA announced export sales of 275,000 tonnes of hard red winter wheat for delivery to unknown destinations during the 2010/2011 marketing year.

Also, USDA announced export sales of 110,000 tonnes of hard red winter wheat for delivery to Egypt during the 2010/2011 marketing year.