DTN Early Word Grains 11/26 06:04
Wheat Leads Grains Higher
December corn is up 2 1/4 cents, November soybeans are up 1 3/4 cents, and
December Chicago wheat is up 4 1/4 cents.
By Todd Hultman
6:00 a.m. CME Globex: December corn is up 2 1/4 cents, November soybeans are
up 1 3/4 cents, and December Chicago wheat is up 4 1/4 cents.
CME Globex Recap: All three grains are higher early Wednesday, helped by
active commercial demand for wheat and a lack of farmer-selling after the
harvest. Spot crude oil prices are staying near their lowest prices in four
years with the market eager to hear the result of Thursday's decision by OPEC.
OUTSIDE MARKETS: The Dow Jones Industrial Average closed 2.96 points lower
Tuesday at 17,814.94. The overnight session has the Dow Jones futures up 16
points early on Wednesday indicating higher prices for U.S. stocks later
Wednesday morning. Asian markets are lower with the Nikkei down 45 points at
17,385. European markets are higher. The overnight crude oil market is up .16
at $74.25 while Brent crude is .30 higher at $78.63. The December gold contract
is $2.40 lower at $1,194.70 while the U.S. dollar index is up .09 at 88.01.
Malaysian palm oil contracts were modestly higher. Soybeans at the Dalian
Exchange were mixed. While the U.S. celebrates Thanksgiving on Thursday, OPEC
will decide whether or not to officially cut oil production in light of prices
at their lowest levels in four years. Many of OPEC's producers are under
financial strain, but so far comments from Saudi Arabia seem to suggest either
no change or only a modest reduction from current production levels of 30.0
million barrels per day, as estimated by the U.S. Energy Department. Crude oil,
gold, and the U.S. dollar will react to OPEC's decision, but the impact on
grain prices should be limited and they are showing no concern early Wednesday.
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