6:00 a.m. CME Globex: July corn is down 1 1/4 cents, July soybeans are up 3 1/4 cents, and September K.C. wheat is down 4 1/2 cents.
CME Globex Recap: Equities are mixed while energy markets are mostly higher with crude oil flagging just below the $60 per barrel mark. From a technical perspective, crude has little in its way until the $64 mark and then on to $67.
Grains will be a focus across all asset classes today as volatility ramps up with key USDA reports on tap. The discussion on the acreage report has become whether the trade can have any confidence in the numbers given the amount of planting activity occurring after the survey period. Throw in Prevented Planting calculations, possible Market Facilitation Payments and historic weather and the trade has its hands full.
We do feel the June 1 stocks portion of the report is important and could have huge implications for the rest of the summer. The strongest basis levels on corn in many areas since 2012 has some positioning for a bullish stocks report but those areas were also the worst hit in terms of ability to plant. How hard are producers holding on to remaining old crop bushels? The market should get a lot smarter at 11:00am CDT.
OUTSIDE MARKETS: Previous closes Thursday showed the Dow Jones Industrial Average down 10.24 at 26,526.58 and the S&P 500 up 11.14 at 2,913.78 while the 10-Year Treasury yield ended at 2.005%. Early Friday, the September DJIA futures are up 70 points.
Asian markets are lower with Japan’s Nikkei 225 down 62.25 (-0.29%) and China’s Shanghai Composite down 17.91 points (-0.6%). European markets are higher with London’s FTSE 100 up 22.41 points (0.3%), Germany’s DAX up 54.43 points (0.44%) and France’s CAC 40 up 13.64 points (0.25%).
The September Euro is up 0.001 at 1.150 and the September U.S. dollar index is down 0.097 at 95.645. The September 30-Year T-Bond is down 8/32nds, while August gold is up $5.00 at $1,417.00 and August crude oil is up $0.03 at $59.46. Soybeans on China’s Dalian Exchange were up 0.74% while soybean meal was down -0.53%.