Supply / Demand Factors Out Muscle EUR/USD & Drive Corn & Soybeans Price Higher

Posted on December 13, 2011

The EUR/USD dropped to lows not seen since January and is trading at €1.3191 as of this writing. Soybeans and Corn are trading higher today on the dry conditions in South America. However, as Allendale Brokers pointed in today’s afternoon commodity report, the key soybean pollination season is not until January unlike corn, which is in a 10 days to 2 weeks. Lastly, 3 firms have set estimates for soybeans under the USDA estimates.  All of these bullish supply / demand factors drove corn and soybean prices higher today, ignoring the stronger dollars influence. Figures are in the table below.

Contract Commodity Last Change
Jan 2012 Soybeans $11.1850 +0.0650
March 2012 Corn $6.0250 +0.0850
March 2012 Wheat $6.0050 +0.0625

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