DTN Grain Open: Weaker as Prices Consolidate, Profits Taken

Corn field at pre-tassel. © Debra L Ferguson

6:00 a.m. CME Globex: July corn is down 8 1/2 cents, July soybeans are down 3 3/4 cents, and July K.C. wheat is down 10 cents.

CME Globex Recap: Equities are easing a bit Wednesday morning after Tuesday’s surge on the back of the European Central Bank signaling it will launch another round of stimulus should the climate of weak growth and political uncertainty fail to lift in coming months.

Grains are weaker for the second session in a row as profits continue to be taken and traders take stock of the environment in front of another round of high-risk reports next week. Traders seem to want to trade every aspect of this market immediately from depressed acres to the potential for sub-trend yields and finally to potential demand destruction.

Price action, however, would suggest participants would do well to trade what is in front of them and what can be quantified before trying to peg final ending stocks in August of 2020. Weekly ethanol production later Wednesday morning and export sales Thursday will be important demand gauges as end users spend a bit more time with $4.50 futures.

OUTSIDE MARKETS: Previous closes Tuesday showed the Dow Jones Industrial Average up 353.01 at 26,465.54 and the S&P 500 up 28.08 at 2,889.67 while the 10-Year Treasury yield ended at 2.06%. Early Wednesday, the June DJIA futures are down 1 point.

Asian markets are higher with Japan’s Nikkei 225 up 361.16 (1.72%) and China’s Shanghai Composite up 27.64 points (0.96%). European markets are lower with London’s FTSE 100 down 27.5 points (-0.37%), Germany’s DAX down 4.65 points (-0.04%) and France’s CAC 40 down 8.75 points (-0.16%).

The September Euro is up 0.001 at 1.130 and the September U.S. dollar index is down 0.068 at 97.085. The September 30-Year T-Bond is down 9/32nds, while August gold is down $5.30 at $1,345.40 and July crude oil is down $0.08 at $53.82. Soybeans on China’s Dalian Exchange were down -0.84% while soybean meal was down -1.98%.

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