6:00 a.m. CME Globex: December corn is down 2 1/4 cents per bushel, November soybeans are up 1 1/2 cents, and December K.C. wheat is up 1/4 cents.
CME Globex Recap: Mostly higher global equity markets overnight as the U.S. continues its recovery from the early August meltdown. Investors were counting on the Federal Reserve to provide another rate cut at its September meeting following one at its August meeting, but comments from Fed officials surrounding the Jackson Hole symposium seem to suggest opinions are much more split about further cuts.
Grains are mixed on the final trading session of the week with most contracts carrying losses into the weekend. The Ag space has witnessed lower weekly closes in five of the last six weeks, bringing prices down to the spring lows before any of the late-planting premium was added. Bulls desperately need to see signs of fresh demand at this lower price structure to avoid further losses.
Regardless of how small this crop is, there will be no shortage of grain anywhere in the United States on November 1. What the producer chooses to sell vs. store at harvest will have a big impact on cash and spreads, signals the market will need in coming weeks.
OUTSIDE MARKETS: Previous closes Thursday showed the Dow Jones Industrial Average up 49.51 at 26,252.24 and the S&P 500 down 1.48 at 2,924.43 while the 10-Year Treasury yield ended at 1.61%. Early Friday, the September DJIA futures are up 89 points.
Asian markets are higher with Japan’s Nikkei 225 up 82.9 (0.4%) and China’s Shanghai Composite up 13.99 points (0.49%). European markets are higher with London’s FTSE 100 up 54.04 points (0.76%), Germany’s DAX up 61.46 points (0.52%) and France’s CAC 40 up 31.11 points (0.58%).
The September Euro is down 0.002 at 1.110 and the September U.S. dollar index is up 0.206 at 98.270. The September 30-Year T-Bond is down 23/32nds, while December gold is down $2.90 at $1,505.60 and October crude oil is down $0.06 at $55.29. Soybeans on China’s Dalian Exchange were up 0.53% while soybean meal was up 1.03%.