DTN Early Word Grains 08/23 05:57
Grains Mixed as Price Limps into Weekend
December corn is down 2 1/4 cents per bushel, November soybeans are up 1 1/2
cents, and December K.C. wheat is up 1/4 cents.
By Todd Hultman
DTN Lead Analyst
6:00 a.m. CME Globex: December corn is down 2 1/4 cents per bushel, November
soybeans are up 1 1/2 cents, and December K.C. wheat is up 1/4 cents.
CME Globex Recap: Mostly higher global equity markets overnight as the U.S.
continues its recovery from the early August meltdown. Investors were counting
on the Federal Reserve to provide another rate cut at its September meeting
following one at its August meeting, but comments from Fed officials
surrounding the Jackson Hole symposium seem to suggest opinions are much more
split about further cuts. Grains are mixed on the final trading session of the
week with most contracts carrying losses into the weekend. The Ag space has
witnessed lower weekly closes in five of the last six weeks, bringing prices
down to the spring lows before any of the late-planting premium was added.
Bulls desperately need to see signs of fresh demand at this lower price
structure to avoid further losses. Regardless of how small this crop is, there
will be no shortage of grain anywhere in the United States on November 1. What
the producer chooses to sell vs. store at harvest will have a big impact on
cash and spreads, signals the market will need in coming weeks.
OUTSIDE MARKETS: Previous closes Thursday showed the Dow Jones Industrial
Average up 49.51 at 26,252.24 and the S&P 500 down 1.48 at 2,924.43 while the
10-Year Treasury yield ended at 1.61%. Early Friday, the September DJIA futures
are up 89 points. Asian markets are higher with Japan's Nikkei 225 up 82.9
(0.4%) and China's Shanghai Composite up 13.99 points (0.49%). European markets
are higher with London's FTSE 100 up 54.04 points (0.76%), Germany's DAX up
61.46 points (0.52%) and France's CAC 40 up 31.11 points (0.58%). The September
Euro is down 0.002 at 1.110 and the September U.S. dollar index is up 0.206 at
98.270. The September 30-Year T-Bond is down 23/32nds, while December gold is
down $2.90 at $1,505.60 and October crude oil is down $0.06 at $55.29. Soybeans
on China's Dalian Exchange were up 0.53% while soybean meal was up 1.03%.
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