DTN Grain Open: Rumors of Chinese Trade Deal Rally Markets

Photo: Kevin Hudson, Mississippi State University

6:00 a.m. CME Globex: July corn was 5 cents higher, July soybeans were 10 cents higher, and July Kansas City (HRW) wheat was 9 cents higher.

CME Globex Recap: Late Thursday brought more rumblings of a trade deal being made with China, including no tariffs against U.S. agricultural commodities and the return of anti-dumping fees already levied against grain sorghum.

Of course the U.S. President denied it, making the situation all the more likely. Overnight trade in grain and oilseeds indicates something may actually be brewing with strong rallies seen in soybeans, corn, and wheat.

OUTSIDE MARKETS: The Dow Jones Industrial Average closed 54.95 points (0.2%) lower at 24,713.98, the NASDAQ Composite lost 15.82 points (0.2%) to 7,382.47, and the S&P 500 dipped 2.33 points (0.1%) to 2,720.13 Thursday. DJIA futures were 81 points higher early Friday morning.

Asian markets closed mostly higher with Japan’s Nikkei 225 up 91.99 points (0.4%), Hong Kong’s Hang Seng gaining 105.76 points (0.3%), and China’s Shanghai Composite up 39.02 points (1.2%). European markets were trading mostly higher with London’s FTSE 100 up 2.84 points, Germany’s DAX up 3.19 points, and France’s CAC 40 gaining 20.90 points (0.4%).

The 10-year Treasury yield was at 3.109% with June 30-year T-Bonds 4/32 higher at 140’18. The euro was 0.0010 lower at 1.1784 as the U.S. dollar index gained 0.13 to 93.60. June gold lost $3.30 to $1,286.10 while crude oil added $0.10 to $71.59. China’s Dalian soybean and Malaysian palm oil futures were both higher overnight.



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