Fed Announcement Helps Prompt Markets Higher

By CnAgri2012-09-14 19:29:17 Print

Corn futures closed higher on Thursday, which is the same day the Federal Reserve announced more aggressive measures to stimulate the U.S. economy. Doane Advisory Services reports that strength in the outside markets helped to stabilize prices after the market racked up steep losses on Wednesday's due to a bearish supply and demand report. The announcement by the Fed sparked heavy buying interest across all commodity markets today. December closed up 4 1/2 cents while March closed up 4 1/2 cents.

Soybean futures closed higher, as well. Market prices rebounded on news that the U.S. Federal Reserve plans to buy $40 billion of mortgage backed debt each month until the economy picks back up showing signs of economic health through improved job data. This announcement sparked aggressive buying across stock and commodity markets by traders and investors. Although the market closed higher, gains were limited by early morning profit taking. November soybeans closed 1/ 1/4 cents higher.

And wheat futures were up. The strong gains in the stock markets motivated investors to buy riskier assets such as agricultural commodities. Prices were also supported by recent selloffs in the dollar index and supply concerns pertaining to global ending stock. December wheat at CBOT closed 11 cents higher; KCBT closed 10 1/4 cents higher; and MGE closed 11 cents higher.