Indiana Grain Company, LLC

Posted: 07/28/10

By: tomgrisafi

We at Indiana Grain love a bull market in grains.

And that's exactly what we saw in corn on Wednesday, as the grain rallied in tandem with wheat and quickly prompted a flurry of short-covering.

Sep. corn closed up 13 1/2 cents to $3.76 1/4, while Dec. corn finished up 13 3/4 cents to $3.90 3/4.

Most traders concur that wheat was a major catalyst for the big upside move in corn.

As we covered here yesterday, there are lingering issues with the wheat crop in Europe and traders foresee a reduction in available feed-quality wheat, which, naturally, is a competitor for corn.

While wheat has put on a great show in recent days, corn clearly usurped its thunder.

Next on the radar, of course, is the weather for soybeans. Should any factors emerge that ultimately drive beans higher, corn may get further support from that possible development.

And if you're an ethanol watcher, ethanol futures rose in lockstep with corn, a move we may continue to see as summer rolls along.