December corn is up 1 1/2 cents per bushel, November soybeans are up 4 1/2 cents, and December K.C. wheat is up 4 cents.
6:00 a.m. CME Globex: December corn is up 1 1/2 cents per bushel, November soybeans are up 4 1/2 cents, and December K.C. wheat is up 4 cents.
CME Globex Recap: Equity markets are higher around the globe, recovering from Tuesday’s losses as concerns over trade abate slightly. One of the biggest features of Tuesday’s trade had to be the strength in the U.S. Dollar Index which saw the basket rally to the highest level since May 12, 2017. Despite a more dovish stance from the Federal Reserve, the greenback is outpacing all of its developed rivals and most of its developing ones too.
Plunging interest rates and notable U.S. dollar strength sets up an interesting environment for commodities as the cost of storage becomes cheaper but hard assets priced in U.S. dollars become more expensive to foreign buyers.
Grain markets are higher across the board Wednesday, bouncing from the selloff posted Tuesday which kicked off the third quarter in brutal fashion. Traders and producers alike are in a holding pattern at the moment, waiting to see if Midwest crops reach full maturity or whether production estimates need to be tweaked lower. Corn demand indicators remain very weak and are acting as a major anchor on futures price. Wheat and soybeans aren’t seeing the same negative demand indicators as corn, providing relative strength as of late.
OUTSIDE MARKETS: Previous closes Tuesday showed the Dow Jones Industrial Average down 285.26 at 26,118.02 and the S&P 500 down 20.19 at 2,926.46 while the 10-Year Treasury yield ended at 1.466%. Early Wednesday, the September DJIA futures are up 199 points. Asian markets are higher with Japan’s Nikkei 225 up 23.98 (0.12%) and China’s Shanghai Composite up 27.26 points (0.93%).
European markets are higher with London’s FTSE 100 up 48.85 points (0.67%), Germany’s DAX up 146.83 points (1.23%) and France’s CAC 40 up 63.29 points (1.16%). The September Euro is up 0.004 at 1.100 and the September U.S. dollar index is down 0.299 at 98.650. The December 30-Year T-Bond is down 20/32nds, while December gold is down $8.00 at $1,547.90 and October crude oil is up $0.29 at $54.23. Soybeans on China’s Dalian Exchange were up 0.29% while soybean meal was up 0.03%.