Overnight Grains Firmer

Overnight grains are steady in early trade on the eCBOT market, with corn up around 7c, wheat 10-12c firmer and soybeans 22-23c higher.

A weakening dollar is encouraging the belief that demand will pick up. Ideas that firmer crude oil and stock market gains will revive the ailing commodity markets is also helping gains this morning.

Corn gained 7.7 percent last week and soybeans 7.6 percent, the first time they've managed to post an increase in five weeks.

Wheat is firmer on ideas that recent price drops have been overdone. The CBOT price plunged 21 percent in October, the biggest monthly decline since February 1986.

A Bloomberg survey reports 20/35 analysts anticipate that corn prices will rise this week. For soybeans 23/35 predict a rally on speculation that government interest-rate cuts and banking bailouts around the world will boost food and feed demand in 2009.