Grain Comments for 1-06-08

CORN

• Corn futures started and ended strong with a good round of technical buying.  The grain market have attract outside buying interest despite any fresh bullish news.
• The corn market has separated itself from the outside markets.  The U. S. Dollar traded on the plus side while crude oil traded both sides of unchanged.
• South Korea issued a corn tender for 55,000 metric tons.  The export demand is routine at best.
• The idea of a decrease on corn plantings for next year supports the new crop months. 
• The next monthly supply and demand report is on the calendar for next Monday.  We will see the final production number for 2008 corn production.
• Momentum is in the favor of the bulls.  Look for this to continue despite over bought condition found on the charts.

WHEAT

• Wheat futures opened slightly higher and closed on the highs of the session.  This grain has seen heavy buying at the close in recent sessions.
• Technical fund buying is a major factor for the advance in the wheat market. 
• Saudi Arabia, Japan and Jordan are working wheat tenders.
• The trade expects less wheat acres, less fertilizer applied and some winterkill.  These are long term bullish conditions.