DTN Opening Grain: Markets Up A Bit As The Dead Cat Bounces

Photo: Iowa State University

CME Globex:  December corn is up 2 cents per bushel, November soybeans are up 1 3/4 cents, and December K.C. wheat is up 3 3/4 cents.

Grains are higher across the board as positive feelings toward trade negotiations add a boost. However, prices are simply enjoying a “dead cat bounce” after many contracts posted fresh lows the last two sessions.

Producers are in no hurry to market grain, despite 13 billion bushels (bb) of corn and three bb of soybeans nearing harvest in the next 30-60 days.

Final yields will still come down to the date of first frost/freeze and whether full maturity can be reached. The trade seems more confident about getting through September, but October is still very much up in the air.

Soybeans on China’s Dalian Exchange were down 0.14% while soybean meal was down 0.56%.

Global equities are rallying, bolstered by news a fresh round of trade talks appears likely in September and October. Last week, negotiations were at a standstill, with both sides ramping up rhetoric. So, it is only fitting that this week provides the opposite influence.

Strong gains in crude oil helped drive prices back toward the 50- and 200-day moving averages, with stronger than expected economic data. The recovery allowed the Bloomberg Commodity Index to see the highest trade since August 1.

Outside Markets

Previous closes on Wednesday showed the Dow Jones Industrial Average up 237.45 at 26,355.47 and the S&P 500 up 31.51 at 2,906.27, while the 10-Year Treasury yield ended at 1.459%. Early Thursday, the September DJIA futures are up 259 points. Asian markets are higher with Japan’s Nikkei 225 up 436.8 (2.12%) and China’s Shanghai Composite up 28.45 points (0.96%).

European markets are higher with London’s FTSE 100 down 42.34 points (-0.58%), Germany’s DAX up 104.45 points (0.87%) and France’s CAC 40 up 50.89 points (0.92%). The September Euro is up 0.002 at 1.110 and the September U.S. dollar index is down 0.213 at 98.180.

The December 30-Year T-Bond is down 41/32nds, while December gold is down $13.50 at $1,546.90 and October crude oil is down $0.13 at $56.13.

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