DTN Early Word Grains 01/23 05:57
Grains Mixed as Trade Turns Technical
March corn is up 1 cent per bushel, March soybeans are down 4 1/4 cents, and
March KC wheat is up 1 3/4 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: March corn is up 1 cent per bushel, March soybeans are
down 4 1/4 cents, and March KC wheat is up 1 3/4 cents.
CME Globex Recap: Weaker equity markets around the globe overnight as
investors still battle with the viral outbreak in China and how it may affect
economic activity moving forward. On the other side of the globe in Davos,
President Trump and European Union commission chief Ursula von der Leyen said
they are "expecting in a few weeks to have an agreement that we can sign
together" with the U.S. covering trade, technology and energy. If President
Trump was able to get a trade deal done with the EU, it would be the third or
fourth big trade breakthrough with a major trading partner in the last 6-8
months. After signing full or partial trade deals with China, Japan and
Mexico-Canada, President Trump would be headed into election season with a full
head of trade steam if a deal with the EU was inked as well. Grain markets are
mixed overnight with wheat and corn clinging to small gains while the soy
complex is mainly lower. Crop estimates in South America are increasing as
Brazilian harvest gets underway and China has yet to make a major purchase of
U.S. commodities. Chicago wheat remains the floor leader and will be trying to
address Wednesday's reversal with Thursday's price action.
OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones
Industrial Average down 9.77 at 29,186.27 and the S&P 500 up 0.96 at 3,320.79
while the 10-Year Treasury yield ended at 1.769%. Early Thursday, the March
DJIA futures are down 13 points. Asian markets are lower with Japan's Nikkei
225 down 235.91 (-0.98%) and China's Shanghai Composite down 84.23 points
(-2.75%). European markets are lower with London's FTSE 100 down 21.49 points
(-0.28%), Germany's DAX down 56.23 points (-0.42%) and France's CAC 40 down
0.31 points (-0.01%). The March Euro is down 0.001 at 1.110 and the March U.S.
dollar index is up 0.015 at 97.310. The March 30-Year T-Bond is up 19/32nds,
while February gold is down $3.30 at $1,553.40 and March crude oil is down
$0.91 at $55.83. Soybeans on China's Dalian Exchange were up 0.25% while
soybean meal was down 0.88%.
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