Corn, Soybeans May Open Higher on China Rate Cut; Wheat May Rise
What follows are opening calls for U.S. grain and oilseed markets, which open at 5 p.m. on the Chicago Board of Trade.
-- Corn futures may open 1 cent to 2 cents a bushel higher on the Chicago Board of Trade as demand may rise after China cut borrowing costs for the first time since 2008 and loosened controls on banks’ lending rates in an effort to spur the economy, Dewey Strickler, the president of Ag Watch Market Advisers in Franklin, Kentucky, said by telephone.
-- Soybean futures may open up 2 cents to 3 cents a bushel in Chicago on expected increases in demand from China and as warm, dry weather in the U.S. curbs crop prospects, Strickler said. Soybean-oil futures are expected to open 0.1 cent to 0.2 cent higher per pound, and soybean-meal futures may open $2 to $3 higher per 2,000 pounds.
-- Wheat futures may open 2 cents to 3 cents a bushel higher on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange as demand may climb and as dry weather in the eastern U.S. Midwest may hurt plants that are about to be harvested, Strickler said.
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