Oil Surge Sends Grain Markets into Consolidation

Grain futures were mixed overnight, with December corn down by 1 cent and November soybeans up by half a cent. The markets are pausing and consolidating at elevated price levels, and analysts believe that they need a fresh fundamental spark to reignite the price uptrends.

The USDA export inspections report and crop progress reports will be released today, which could provide some direction for the markets. However, the key outside markets are expected to remain bearish, with the US dollar solidly higher and oil prices sharply up.

Oil prices rose after Saudi Arabia closed a major crude pipeline following attacks, disrupting a key route that bypasses the Strait of Hormuz. Brent crude oil futures rose as much as 3.7% to above $108 a barrel, before paring gains, while West Texas Intermediate was near $103.