This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Corn, Wheat Price Pop on Weak Dollar

Stocks in this article: CPO GIS K DE MOS AGU CF


NEW YORK ( TheStreet) -- Corn and wheat futures were strengthening Monday morning on the back of broader gains in commodities.

"Grains were higher overnight in sympathy with an overall commodity rebound and setback in the U.S. dollar," says MF Global broker Joseph Vaclavik.

"Commodities, generally priced in dollars, become a better deal for foreign buyers when the U.S. currency weakens. The U.S. dollar index was softer by 0.07% to $74.86.

The July wheat contract was gaining 2.3% to $7.76 ¾ a bushel and at the helm of agricultural commodity leaders Monday morning. Bad planting conditions were providing a boost.

July corn futures were rising 1.5% to $6.96 ½ a bushel as the bullish market for this grain persists.

According to Benson Quinn Commodities, cool and wet conditions continue to hamper spring wheat planting across the northern U.S. and Canada. Meanwhile, the weather continues to be overly dry in the European Union, former Soviet Union and northeast China.

MF Global's Vaclavik believes that corn continues to be in a bull market, but hiccups could occur. For instance, the narrowing spread between new corn contracts and old corn contracts indicates that something isn't quite right with demand, he notes. "Slow export demand and falling livestock prices has some wondering about the future of demand."

Food and agricultural research organization Informa estimates that corn acres this year will be at 91.9 million this year vs. the U.S. Department of Agriculture estimate of 92.2 million acres. If the weather is good this summer, the market will likely be $1.50 overpriced for new corn crop, and if the weather is bad and yields are low, new corn could be $1.50 underpriced, according to Vaclavik.

Corn processor Corn Products International (CPO) was rising 0.5% to $53.79, while food giants General Mills (GIS) and Kellogg (K) traded sideways at $38.62 and fell 0.2% to $56.62, respectively. Farm equipment maker Deere (DE) was rising 0.6% to $92.04.

Fertilizer stocks were trading in mixed territory, with Mosaic (MOS) up 0.4% to $71.45, Agrium (AGU) down 0.2% to $84.01 and CF Industries (CF) 0.7% higher at $138.82.

>>Search for Highest Dividends by Rate or Yield

More on Earnings
Today's Top Earnings
Earnings Calendar

-- Written by Andrea Tse in New York.



>To contact the writer of this article, click here: Andrea Tse.

>To follow the writer on Twitter, go to Andrea Tse.

>To submit a news tip, send an email to: tips@thestreet.com.

Copyright 2011 TheStreet.com Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,655.52 +298.65 1.72%
S&P 500 2,047.63 +34.74 1.73%
NASDAQ 4,730.4950 +86.1830 1.86%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs