6:00 a.m. CME Globex: December corn is up 3/4 cents per bushel, November soybeans are up 4 1/2 cents, and December K.C. wheat is down 1 1/2 cents.
CME Globex Recap: Higher equity markets across Europe and the U.S. as investors await the Federal Reserve meeting minutes from late-July which should confirm discussion of several more interest rate cuts to keep doves and bulls happy. Crude oil continues to stage a comeback after hitting calendar year lows in early August with spot prices now moving above the 50 and 200-day moving averages overnight.
Grain futures are mixed overnight with higher row crops and softer wheat. The Ag space seems to be more intently focusing on temperature forecasts this week as lead times are now probing out into mid and late-September.
In general, below normal temperatures are expected from NOAA for the month of September, but the DTN forecast sees warmer trends with much of the Midwest 1-2 degrees above normal for the month as a whole. Current corn and soybean yield ideas are contingent upon normal frost dates, or even late frost dates in many cases.
If an early frost/freeze were to make its way into the Upper-Midwest, yield potential could be cut drastically. It is likely we will see markets react to model changes on temperatures heading into September in much the way we see markets react to rainfall forecasts in June and July.
OUTSIDE MARKETS: Previous closes Tuesday showed the Dow Jones Industrial Average down 173.35 at 25,962.44 and the S&P 500 down 23.14 at 2,923.65 while the 10-Year Treasury yield ended at 1.561%. Early Wednesday, the September DJIA futures are up 162 points.
Asian markets are mixed with Japan’s Nikkei 225 down 58.65 (-0.28%) and China’s Shanghai Composite up 0.33 points (0.01%). European markets are higher with London’s FTSE 100 up 71.33 points (1%), Germany’s DAX up 137.99 points (1.18%) and France’s CAC 40 up 81.23 points (1.52%).
The September Euro is down 0.000 at 1.110 and the September U.S. dollar index is up 0.022 at 98.085. The September 30-Year T-Bond is down 23/32nds, while December gold is down $6.20 at $1,509.50 and October crude oil is up $0.46 at $56.59. Soybeans on China’s Dalian Exchange were -0.18% while soybean meal was up 0.45%.