DTN Early Word Grains 10/16 05:54
Grain Lower as Demand News Turns Sour
December corn is down 3 1/4 cents per bushel, November soybeans are down 1
3/4 cents, and December K.C. wheat is down 3/4 cent.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: December corn is down 3 1/4 cents per bushel, November
soybeans are down 1 3/4 cents, and December K.C. wheat is down 3/4 cent.
CME Globex Recap: Global equities are mixed with the same major themes
dominating news flow. Fortunately, President Trump did decide to forgo
implementing the latest round of tariff hikes on Chinese imported goods
scheduled for October 15, giving more confidence to the idea an interim deal
can be reached. Reports suggest the Chinese are still insistent on the original
round of tariffs being reduced or eliminated before they will agree to the
$40-50 billion worth of U.S. agricultural purchases. Grains are weaker across
the board with December corn now a dime away from the $4.00-handle after
looking as though the ship had finally been righted. Between the uncertainty
regarding the trade deal, as well as reports the Trump Administration changes
to the RFS will not account for the lost demand from 2016-2018, demand news
this week has not been overwhelmingly strong. The market is still waiting on a
resumption of harvest in the Midwest, and especially fields to dry out in the
Northern Plains so damage can be assessed. Some producers could be waiting for
the ground to freeze before equipment can be supported.
OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial
Average up 237.44 at 27,024.80 and the S&P 500 up 29.53 at 2,966.15 while the
10-Year Treasury yield ended at 1.771%. Early Wednesday, the December DJIA
futures are down 64 points. Asian markets are mixed with Japan's Nikkei 225 up
265.71 (1.2%) and China's Shanghai Composite down 12.33 points (-0.41%).
European markets are mixed with London's FTSE 100 down 15.39 points (-0.3%),
Germany's DAX up 9.04 points (0.07%) and France's CAC 40 down 12.9 points
(-0.23%). The December Euro is up 0.000 at 1.110 and the December U.S. dollar
index is up 0.042 at 98.045. The December 30-Year T-Bond is up 17/32nds, while
December gold is up $2.10 at $1,485.60 and November crude oil is up $0.28 at
$53.09. Soybeans on China's Dalian Exchange were up 0.21% while soybean meal
was up 0.17%.