Grains, Soybeans May Rise as Demand Climbs Following Price Slump
What follows are opening calls for U.S. grain and oilseed markets.
-- Corn futures are called to open 3 cents to 4 cents a bushel higher on the Chicago Board of Trade on speculation that demand for U.S. supplies will rise after prices slumped almost 9 percent in the past week, Jim Gerlach, the president of A/C Trading Co. in Fowler, Indiana, said in a telephone interview. Adverse weather has also reduced crop prospects in South America, he said.
-- Soybean futures may open 9 cents to 12 cents a bhusel higher in Chicago on speculation that adverse weather threatening yields in South America will spur increased Chinese purchases of U.S. supplies, Gerlach said. Soybean-oil futures are expected to open 0.3 cent to 0.5 cent a pound higher, and soybean-meal futures may open $3 to $4 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 on speculation that the 25 percent drop in prices in the past 12 months will increase export demand for U.S. grain Gerlach said.
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