Grain Markets Hit New Highs as December Corn Futures Reach 530

Grain markets continue to push to new highs, with December Corn futures reaching 530 after adding another 1% in overnight trade. The surge is partly due to gains in wheat futures, which rose by about 15 cents.

The late-day weakness in oil was initially seen as a potential drag on corn prices, but this correlation has significantly diminished over the past few days. The average true range for oil over the last 14 days stands at 3.54, indicating that a larger move is needed to trigger a sympathy trade in corn.

Despite technical overextension in the near term, market fundamentals suggest further price increases are possible. Analysts point out that the market has underpriced upside risks for months, and prices have been making up for lost time with five consecutive days of gains.