Indiana Grain Company, LLC

Posted: 07/14/10

By: tomgrisafi

We at Indiana Grain love a good grain rally.

Commodities prices were in play today and elevated as investors bought riskier assets following "reassuring signs of economic growth" as the AP report put it.

"Many metal, grain and energy contracts climbed following better-than-expected earnings reports from aluminum producer Alcoa Inc. and railroad operator CSX Corp., both of which are seen as economic bellwethers. Metals in particular got a boost after Alcoa said global demand for aluminum will increase by more than it had previously forecast."

Tom Pawlicki, an analyst at MF Global in Chicago, said "increased demand for aluminum worldwide implies there could be an increase in demand for other metals as well."

"It would be a reflection that maybe auto market demand would rise," which would boost the price of platinum and palladium, Pawlicki said. Like aluminum, platinum and palladium are also used to make cars.

Palladium for September delivery rose $15, or 3.3 percent, to $469.15 an ounce. October platinum rose $20.10 to settle at $1,535.40 an ounce.

Meanwhile, silver for September delivery jumped 34 cents to settle at $18.257 an ounce. Among other metals, copper for September delivery rose less than a penny to $3.0175 a pound. Gold for August delivery climbed $14.80 to $1,213.50 an ounce.

"Grain and bean prices mostly rose. Wheat for September delivery rose 13.5 cents to settle at $5.4925 a bushel, while corn dipped 4.5 cents to settle at $3.7525 a bushel. Soybeans for August delivery fell 2.75 cents to $9.95 a bushel."