6:00 a.m. CME Globex: December corn is up 1/2 cent per bushel, January soybeans are up 1/2 cent, and December K.C. wheat is up 3 1/4 cents.
CME Globex Recap: Equity markets are stronger around the globe as sentiment continues to improve toward U.S.-China trade negotiations. Monday evening reports surfaced suggesting the Trump administration was close to rolling back some previously enacted tariffs on Chinese goods in an effort to get “phase one” of the trade deal signed this month.
The news helped the Chinese renminbi rally to 6.995:1 against the U.S. dollar, the strongest level its traded since mid-August. There still hasn’t been a date or location for a potential signing, and until that takes place, the market should probably remain patient.
Grains are mostly higher, bouncing back from a weak session Monday. A mostly open week of harvest activity for the central belt with temperatures expected to remain below normal the next two weeks. Traders are gearing up for Friday’s WASDE report but it is clear confidence in the USDA yield numbers is not high.
Anecdotal harvest reports from the U.S. farmer have been sporadic enough to not yield a definitive answer on direction from October, and crop conditions have been steady or better than a month ago. The trade is still positioning for lower national yields in our opinion despite some well-known private estimates adding to their production ideas from last month.
OUTSIDE MARKETS: Previous closes Monday showed the Dow Jones Industrial Average up 114.75 at 27,462.11 and the S&P 500 up 11.36 at 3,066.91 while the 10-Year Treasury yield ended at 1.786%. Early Tuesday, the December DJIA futures are up 83 points.
Asian markets are higher with Japan’s Nikkei 225 up 401.22 (1.76%) and China’s Shanghai Composite up 16.07 points (0.54%). European markets are higher with London’s FTSE 100 up 27.52 points (0.37%), Germany’s DAX up 21.81 points (0.17%) and France’s CAC 40 up 10.66 points (0.18%).
The December Euro is up 0.000 at 1.120 and the December U.S. dollar index is down 0.016 at 97.350. The December 30-Year T-Bond is down 24/32nds, while December gold is down $4.90 at $1,506.20 and December crude oil is up $0.41 at $56.95. Soybeans on China’s Dalian Exchange were down 0.03% while soybean meal was down 0.07%.