DTN Early Word Grains 07/08 06:01
Grains Mixed on Weather Outlook
December corn is down 4 cents per bushel, November soybeans are down 4 3/4
cents, and September KC wheat is up 2 cents.
DTN Contributing Analyst
Pre-6 a.m. Globex Prices: December corn is down 4 cents per bushel, November
soybeans are down 4 3/4 cents, and September KC wheat is up 2 cents.
CME Globex Recap: Equity trade is mixed to weaker overnight, although U.S.
futures are clawing back toward unchanged at the time of this writing while
European indices are posting solid losses. Worth noting, the U.S. Treasury just
held an auction of various securities which produced a record low yield on
10-year notes. The 0.63% yield on the 10-year security still shows investors
are demanding safe haven assets in the era of the coronavirus. Energy markets
are posting small losses overnight while precious metals are firmer with gold
actually trading to the highest level since 2011. Grains are mixed with row
crops softer and wheat markets firmer. Ag trade is increasingly tied to weather
model runs and the changes from one set to the next. Traders will be gearing up
the balance of the week in preparation for the July WASDE on Friday which will
incorporate June 30 acreage and stocks. Some demand changes could hold
long-term implications into the 2020/21 marketing year.
OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial
Average down 396.85 at 25,890.18 and the S&P 500 down 34.40 at 3,179.72 while
the 10-Year Treasury yield ended at 0.65%. Early Wednesday, the September DJIA
futures are down 33 points. Asian markets are mixed with Japan's Nikkei 225
down 176.04 (-0.78%) and China's Shanghai Composite up 58.1 points (1.74%).
European markets are lower with London's FTSE 100 down 20.94 points (-0.34%),
Germany's DAX down 98.93 points (-0.78%) and France's CAC 40 down 52.88 points
(-1.05%). The September Euro is down 0.002 at 1.130 and the September U.S.
dollar index is up 0.091 at 96.930. The September 30-Year T-Bond is up
3/32nds, while August gold is up $5.90 at $1,815.80 and August crude oil is
down $0.13 at $40.49. Soybeans on China's Dalian Exchange were down 0.27% while
soybean meal was down 0.75%.
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