6:00 a.m. CME Globex: December corn is up 1 1/4 cents per bushel, November soybeans are up 7 1/4 cents, and December K.C. wheat is up 1 3/4 cents.
CME Globex Recap: Equity markets are mixed around the globe, but traders were encouraged by President Trump’s decision to delay his proposed tariff hike from October 1 to October 15 to give trade talks in early October a chance. His move followed a similar move by China earlier Wednesday, the first signs of optimism we’ve seen on either side in several weeks.
Grain markets are higher across the board as we get set for the September WASDE later Thursday morning. The average trade estimates expect cuts to supply in corn and soybeans and the USDA will for the first time be using objective yield data from the field. Bulls expect this will finally expose the lack of yield in the Midwest while bears point toward record breaking rainfall and a cooler than normal summer as evidence the bushels should be there provided they are allowed to finish.
We will be interested to see demand changes for both marketing years which could quietly steal the show if USDA doesn’t provide the large-scale changes to supply some are expecting.
OUTSIDE MARKETS: Previous closes Wednesday showed the Dow Jones Industrial Average up 227.61 at 27,137.04 and the S&P 500 up 21.54 at 2,979.39 while the 10-Year Treasury yield ended at 1.733%. Early Thursday, the September DJIA futures are up 45 points.
Asian markets are higher with Japan’s Nikkei 225 up 161.85 (0.75%) and China’s Shanghai Composite up 22.42 points (0.75%). European markets are mixed with London’s FTSE 100 down 2.46 points (-0.03%), Germany’s DAX up 16.09 points (0.13%) and France’s CAC 40 down 5.03 points (-0.09%).
The September Euro is up 0.001 at 1.100 and the September U.S. dollar index is down 0.073 at 98.555. The December 30-Year T-Bond is up 4/32nds, while December gold is up $7.20 at $1,510.40 and October crude oil is down $0.53 at $55.22. Soybeans on China’s Dalian Exchange were down 0.23% while soybean meal was down 0.52%.