DTN Early Word Grains 10/15 05:56
Grain Setback on Lack of Trade Details
December corn is down 1 cent per bushel, November soybeans are down 1/4
cent, and December K.C. wheat is down 2 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: December corn is down 1 cent per bushel, November
soybeans are down 1/4 cent, and December K.C. wheat is down 2 cents.
CME Globex Recap: Global equity markets are mostly higher overnight with
investors shifting focus from U.S.-China trade to 'Brexit,' even if for the
moment. The EU's chief negotiator said a new withdrawal deal between the U.K.
and EU is still possible this week, although time is running thin. Data out
overnight included Chinese inflation statistics which showed the strongest
inflation in six years as the pork shortage continues to drive up the cost of
living. The nearly 70% rise in Chinese pork prices from a year earlier is an
astounding figure, and the acceleration from the last few months proves the
People's Republic of China still does not have a handle on African Swine Fever.
Grain markets are weaker across the board, easing back from the highs made
Monday which included several multi-month highs. Traders are anxiously awaiting
producers return to the fields and additional harvest activity so a better
assessment on yields can be made. For those in the Northern Plains, progress
will be nil the rest of this week as they wait on snow to melt from the fields.
Ag prices will remain sensitive to any details about the U.S.-China trade deal,
although without confirmation from the USDA or hard details from financial
media, our markets could begin discounting the odds of the deal happening in
OUTSIDE MARKETS: Previous closes Monday showed the Dow Jones Industrial
Average down 29.23 at 26,787.36 and the S&P 500 down 4.12 at 2,970.27 while the
10-Year Treasury yield ended at 1.733%. Early Tuesday, the December DJIA
futures are up 93 points. Asian markets are mixed with Japan's Nikkei 225 up
408.34 (1.87%) and China's Shanghai Composite down 16.84 points (-0.56%).
European markets are higher with London's FTSE 100 down 5.82 points (-0.08%),
Germany's DAX up 54.12 points (0.43%) and France's CAC 40 up 26.44 points
(0.47%). The December Euro is down 0.002 at 1.110 and the December U.S. dollar
index is up 0.030 at 98.200. The December 30-Year T-Bond is up 15/32nds, while
December gold is up $1.70 at $1,499.30 and November crude oil is down $1.13 at
$52.46. Soybeans on China's Dalian Exchange were up 0.18% while soybean meal
was up 0.5%.
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