Prices have rebounded strongly in evening trading on stronger economic prospects bouyed by higher stock markets. One interesting aspect of the financial markets is that the grain futures market closes at 1:15 pm CST, but the stock markets don't close until nearly two hours later at 3:00 pm CST. In a case like today, in which the stock market rallies strongly after the close of grain trading, it tends to set up the grain markets for a rally when it reopens later, on the hopes that an economic revival will result in increased demand for grain products. This phenomenon also exists at times to some degree in the mornings, because the grain market is closed from 6:00 am to 9:30 am CST, while stock index futures continue to trade throughout this period, including the stock market open at 8:30 am CST. Strong momentum in stocks often bleeds into the grain markets when they open again at 9:30 am.From Reuters this evening (the reference here to "Wednesday" is written to be released in Asia, where it is already Wednesday morning):
U.S. soybean, corn and wheat futures rose on Wednesday, as stronger U.S. home sales data buoyed stock markets and firmed crude oil prices.
