Corn, Soybeans Called to Open Higher on Fed Rate Outlook; Wheat May Rally
(Bloomberg) – Corn futures are called to open 7 cents to 10 cents a bushel higher on the Chicago Board of Trade after the Federal Reserve said that it expects to keep U.S. interest rates low into late 2014, eroding the appeal of the dollar and boosting demand for commodities, Jim Gerlach, the president of A/C Trading Co. in Fowler, Indiana, said in a telephone interview.
— Soybean futures may open 7 cents to 10 cents a bushel higher on the CBOT on speculation that low borrowing costs will spur the global economy, boosting demand for food and livestock feed, Gerlach said. Soybean-oil futures are expected to open 0.25 cent to 0.35 cent a pound higher, and soybean-meal futures may open $2 to $3 higher per 2,000 pounds.
— Wheat futures may open 10 cents to 12 cents a bushel higher on the CBOT, the Kansas City Board of Trade and the Minneapolis Grain Exchange on speculation that freezing weather forecast during the next six days in parts of Russia and Ukraine will damage winter crops, Gerlach said.
WHAT TO WATCH: (ALL TIMES NEW YORK)
10 a.m. December leading indicators
10 a.m. December new-home sales
10 a.m. Kansas City Federal Reserve manufacturing activity
2 p.m. USDA daily cattle and hog slaughter
TOP COMMODITY STORIES:
-Copper, Oil, Wheat Rally as Fed Commits to Low Interest Rates
-Caterpillar Profit Beats Estimates as Mining Demand Rises
-Potash Forecast Misses Estimates as Fertilizer Demand Falls
-MF Global Clients May Lose in $700 Million Bankruptcy Fight
-Less Meat and Potatoes in School Meals Rankle Industry Groups
-Ukraine Grain Crop May Fall as Much as 30%, ProAgro Says
-Russia Grain Crop Rose 54% to 93.9 Million Tons, Rosstat Says
-China to Build Grain-Transportation Network, Xinhua Reports
-Mexican Corn Farmers Crop Losses Almost Double After Drought
-Palm Oil Drops as Exports Decline After Festival Demand Wanes
-Indonesia Monthly Palm-Oil Output May Be 1.5 Million Tons in Q1
-Russian Meat, Byproduct Output Rose 4.4% in 2011, Rosstat Say
TOP ECONOMIC AND GOVERNMENT NEWS:
-Stocks, Commodities Rise as Treasuries Gain on Fed-Easing Bets
-Bernanke Makes Case for More Bond Buying Amid 8.5% Unemployment
-Durable Goods Orders in U.S. Climb 3%, More Than Forecast
-Jobless Claims in U.S. Rise, Displaying Seasonal Volatility
-Greek Debt Talks Resume Amid Squabbles Over Mounting Costs
-Bernanke Moves Fed Toward More Openness With 2% Inflation Goal
-Container Ships at Clipper Speed Run Out of Options on Slump
MARKETS (AS OF 9:33 A.M. NEW YORK TIME):
Last %Chg
Corn $6.4325 1.4
CBOT Wheat $6.535 1.9
Soybeans $12.23 0.8
Soybean Oil $0.5165 0.5
Soybean Meal $323.90 0.9
WTI Crude Oil $100.85 1.5
N.Y. Gasoline $2.8519 0.6
U.S. Dollar Index 79.197 -0.5
S&P 500 1,329.81 0.3
To contact the reporters on this story:Jeff Wilson in Chicago at jwilson29@bloomberg.net; Whitney McFerron in Chicago at wmcferron1@bloomberg.net.
To contact the editor responsible for this story: Steve Stroth at sstroth@bloomberg.net
