CHICAGO, Illinois (Agriculture.com)--At mid-session, the CME Group grain markets hit their stride on a big rally sparked by the outside markets Tuesday.The Dec corn futures are 17 cents higher at $4.88 1/2. The Nov. soybean contract is 16 1/2 cents higher at $10.70 1/2. The Dec. wheat futures are 17 1/4 cents higher at $6.64 1/2. The Dec. soyoil futures are 43 points higher at $43.88. The Dec. soymeal futures contract is $5.80 higher at $298.00 per short ton.
In the outside markets, the NYMEX crude oil is $1.17 per barrel higher, the dollar is sharply lower, and the Dow Jones Industrials are up 162 points.
The outside markets lead the way for everything to be sharply higher this morning, traders say.
Japan's altering of its yen has rocketed the markets higher. It's tumbling the dollar, which is bullish for the grains, traders say.
Tim Hannagan, PFGBest.com senior grain analyst, says today is a continuation of Monday's bullish action. "Traders with short positions and big profits, on last week's break in prices, are buying back those positions as new speculative longs enter off the early week lows on two issues. One, they expect corn yields and production to come in lower on Friday's USDA Crop Production Report. The lower expected yields are based upon the southern Delta's and eastern Corn Belt September harvests that recorded the lowest crop ratings."
Hannagan adds, "In September, record Chinese soybean purchases sets us up to see the report show an increase in bean export projections, possibly leading to lower ending stocks. It's all about the fear of the next report and the fear is it could be bullish. This will be the third consecutive month a rally occurs off of a government report."