6:00 a.m. CME Globex: December corn is down 11 1/4 cents per bushel, November soybeans are up 7 1/4 cents, and September K.C. wheat is down 2 1/4 cents.
CME Globex Recap: Weaker stock markets around the globe overnight Monday, pressured by bond yields extending their recent plunge. In the U.S. on Monday, the 10-yr treasury note saw its yield fall to 1.645%, the lowest level in almost three years while the 30-yr treasury bond yield settled at 2.133%, just above the record low of 2.088% in July 2016. Similar performances were noted in German bunds and Chinese government debt.
It is difficult to dismiss the price action in debt, especially as it pertains to global growth fears. Traders heading for the safer haven of government-backed securities speaks to the larger fears about the global economy.
Grain markets are mixed to weaker Tuesday morning following the rout suffered Monday following the bearish blow dealt by the USDA. Soybeans managed to post positive trade overnight, receiving the “least bearish” report from the government. With the data received Monday, corn will have a difficult time shaking both yield and acreage assumptions until combines roll in 45-60 days.
The remaining fund long in corn has likely been exited so now it is a question of whether they will move to a meaningful net short position or simply remain on the sidelines.
OUTSIDE MARKETS: Previous closes Monday showed the Dow Jones Industrial Average down 389.73 at 25,897.71 and the S&P 500 down 35.56 at 2,918.65 while the 10-Year Treasury yield ended at 1.639%. Early Tuesday, the September DJIA futures are down 95 points.
Asian markets are lower with Japan’s Nikkei 225 down 229.38 (-1.11%) and China’s Shanghai Composite down 17.73 points (-0.63%). European markets are lower with London’s FTSE 100 down 34.72 points (-0.48%), Germany’s DAX down 93.85 points (-0.8%) and France’s CAC 40 down 24.56 points (-0.46%).
The September Euro is down 0.002 at 1.120 and the September U.S. dollar index is up 0.132 at 97.330. The September 30-Year T-Bond is up 12/32nds, while December gold is up $22.00 at $1,539.20 and September crude oil is down $0.07 at $54.86. Soybeans on China’s Dalian Exchange were up 0.26% while soybean meal was up 1.21%.