Back to Main Commodities Have A Strong Start To The Week

• Published: 2008-12-09 10:27:34

  Agricultural commodities borrowed strength from outside markets today. Markets opened sharply higher on support from higher crude oil and precious metals, a weaker USD and surging equities markets.
  
  Corn had little fundamental news to support it, demand remains weak limiting the market’s upside potential. Chicago futures closed at US$3.30/bu, up 20c on Friday’s price. Argentinean weather forecasts are favourable for corn crops, with rains predicted for some of the driest areas this week. Brazil is also likely to get beneficial rains however production estimates there are down 7.2% from last year’s crop, due to weather and to growers switching to soybean production.
  
  Generally local feed barley markets fell slightly; with plenty of feed wheat this year demand is low for feed barley.
  
  Chicago soybean futures rallied today, climbing on speculative buying and short covering amid spillover support from outside markets. CBOT January beans finished 37c higher at $8.21. ICE January canola also lifted, feeling the effects of increasing international vegetable oil prices. ICE canola futures closed at CA$367/t an increase of $13/t. Domestic canola held above $500/t on the east coast, and was at $488/t on the West Coast.
  
  US wheat also felt support from outside markets, with March CBOT wheat climbing 15c to close at $4.90/bu The grains spent the day session trying to gain back what they lost on Friday as last week's losses were thought to be overdone.
  
  In local markets wheat increased across all port zones. Central Queensland and Brisbane port zone harvest is almost complete. The downgraded wheat has made the cash market protein hungry in the short term.
  

  Tags: Canola ,  Barley ,  Oilseeds ,  Coarse Grain ,  Wheat ,  Grain ,  Livestock , 

  

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