6:00 a.m. CME Globex: December corn is up 1 cent per bushel, November soybeans are up 2 cents, and September K.C. wheat is down 2 cents.
CME Globex Recap: Global equities are rebounding after the Reserve Bank of India cut interest rates Wednesday for the fourth time this year and became the third major central bank to do so in 2019. The fact so many major international banks are reducing interest rates speaks to the overall gloomy nature of the global economy and the impact the U.S.-China trade war is likely having on all.
President Trump made headlines Tuesday with a series of tweets backing farmers and suggesting he is prepared for another round of support payments in 2020 if necessary after China said they were halting all U.S. agricultural imports. This would seem to suggest the trade war will be here into the 2020 election season, a negative for agriculture and the larger global economy.
Grains are mixed with row crops higher and wheat lower with consolidative trade grabbing hold. Option volatility is slowly working higher and should continue to do so into next Monday’s USDA report. The report will be one of the largest supply vs. demand showdowns in history with the prospect for major supply cuts while demand gets smashed due to African Swine Fever, export competition and poor ethanol profitability.
Which category gets cut most severely should provide price direction heading into fall.
OUTSIDE MARKETS: Previous closes Tuesday showed the Dow Jones Industrial Average up 311.78 at 26,029.52 and the S&P 500 up 37.03 at 2,844.74 while the 10-Year Treasury yield ended at 1.739%. Early Wednesday, the September DJIA futures are up 104 points.
Asian markets are lower with Japan’s Nikkei 225 down 68.75 (-0.33%) and China’s Shanghai Composite down 8.88 points (-0.32%). European markets are higher with London’s FTSE 100 up 60.34 points (0.84%), Germany’s DAX up 153.14 points (1.32%) and France’s CAC 40 up 69.64 points (1.33%).
The September Euro is down 0.002 at 1.120 and the September U.S. dollar index is up 0.068 at 97.485. The September 30-Year T-Bond is up 47/32nds, while December gold is up $17.40 at $1,501.60 and September crude oil is down $0.12 at $53.51. Soybeans on China’s Dalian Exchange were up 0.5% while soybean meal was up 0.31%.