Overnight Grains Jump On Demand Hopes
Overnight grains are higher Thursday morning, adding to last night's impressive gains, on hopes that the falling dollar and freight rates at their lowest for six years will stimulate export demand.
At 8.30am GMT soybeans are up around 20-25 cents, with wheat and corn both around 10 cents higher.
Yesterday's half percent interest rate cut by the Fed led the U.S. dollar to its biggest one-day fall in 23 years. China also lowered rates for the third time in two months in a bid to alleviate the credit freeze and boost economic growth.
Egypt yesterday passed on US wheat in favour of Russian, purchasing 120,000mt at $179/tonne. Japan is seeking to buy 96,000 tons of milling wheat at a tender tomorrow. This is business that the US would confidently expect to get.
Firmer crude oil is also adding support to the grains sector. Crude climbed above $70/barrel in overnight trade on hopes that the US and Chinese rate cuts will stimulate demand. US gasoline stocks surprisingly fell last week according to data from the Energy Dept released yesterday.
At 8.30am GMT soybeans are up around 20-25 cents, with wheat and corn both around 10 cents higher.
Yesterday's half percent interest rate cut by the Fed led the U.S. dollar to its biggest one-day fall in 23 years. China also lowered rates for the third time in two months in a bid to alleviate the credit freeze and boost economic growth.
Egypt yesterday passed on US wheat in favour of Russian, purchasing 120,000mt at $179/tonne. Japan is seeking to buy 96,000 tons of milling wheat at a tender tomorrow. This is business that the US would confidently expect to get.
Firmer crude oil is also adding support to the grains sector. Crude climbed above $70/barrel in overnight trade on hopes that the US and Chinese rate cuts will stimulate demand. US gasoline stocks surprisingly fell last week according to data from the Energy Dept released yesterday.