6:00 a.m. CME Globex: December corn is up 1 1/4 cents per bushel, November soybeans are up 3 cents, and December KC wheat is down 1 cent.
CME Globex Recap: Global equities are higher as financial media outlets carry positive comments from Chinese officials about trade negotiations restarting. A spokesman for China’s Ministry of Commerce said early Thursday China remained committed to calmly resolving the trade dispute with the United States and is against any further escalation in tensions.
We’ve heard pleasantries from both sides in recent days but it continues to amaze us how willing markets are to trade on offhand comments made by either side. There has been no announcement about the next face-to-face meeting between the two parties, and until there is, we remain pessimistic about any larger deal.
Grains are mixed with two sessions left ahead of the three-day Labor Day holiday. When traders return to desks Tuesday, weather forecasts should be able to have confidence about temperatures out to Sept. 18-20. Most areas in the Midwest need to get through the month of September at the bare minimum to stave off substantial yield declines from an early end to the growing season.
Demand data has been mostly bearish this week although soybean and wheat export sales will be a focus later Thursday morning.
OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial Average up 258.20 at 26,036.10 and the S&P 500 up 18.78 at 2,869.16 while the 10-year Treasury yield ended at 1.466%. Early Thursday, the September DJIA futures are up 258 points.
Asian markets are lower with Japan’s Nikkei 225 down 18.49 (0.09%) and China’s Shanghai Composite down 2.84 points (0.1%). European markets are higher with London’s FTSE 100 up 77.98 points (1.1%), Germany’s DAX up 138.73 points (1.19%) and France’s CAC 40 up 7484 points (1.39%).
The September euro is down 0.001 at 1.110 and the September U.S. dollar index is up 0.085 at 98.205. The September 30-year T-Bond is down 18/32nds, while December gold is down $1.70 at $1,547.40 and October crude oil is up $0.41 at $56.19. Soybeans on China’s Dalian Exchange were up 0.2% while soybean meal was up 1.44%.