6:00 a.m. CME Globex: December corn is up 1/2 cent per bushel, November soybeans are up 1 1/4 cents, and December K.C. wheat is up 2 3/4 cents.
CME Globex Recap: Global equity markets are rallying on ideas of a potential trade truce between China and the U.S. as well as the stimulus package delivered by the European Central Bank. The tenor of trade talks feels as positive as it has anytime in the last several months with both sides offering small concessions ahead of the next round of talks in October. The European Central Bank announced a new quantitative easing program on Thursday which will see the bank purchase $21.9 billion worth of assets for as long as the body deems necessary.
Grains are mostly higher, led overnight by wheat after soybeans stole the show Thursday. Futures markets took their cue from cash markets with traders anxiously awaiting some announcements from the USDA on exports to China. The small yield reductions issued on corn and soybean yields from the USDA on the September WASDE will have analysts cutting yields further for the October WASDE, although much will come down to the first frost date in much of the country.
The $9.00 level in November soybeans is close at hand and could put managed fund positions underwater if breached.
OUTSIDE MARKETS: Previous closes Thursday showed the Dow Jones Industrial Average up 45.41 at 27,182.45 and the S&P 500 up 8.64 at 3,000.93 while the 10-Year Treasury yield ended at 1.791%. Early Friday, the September DJIA futures are up 84 points.
Asian markets are higher with Japan’s Nikkei 225 up 228.68 (1.05%) and China’s Shanghai Composite up 22.42 points (0.75%). European markets are higher with London’s FTSE 100 down 19.67 points (-0.27%), Germany’s DAX up 19.93 points (0.16%) and France’s CAC 40 up 10.58 points (0.19%).
The September Euro is up 0.003 at 1.110 and the September U.S. dollar index is down 0.248 at 98.060. The December 30-Year T-Bond is down 10/32nds, while December gold is up $5.90 at $1,513.30 and October crude oil is down $0.29 at $54.80. Soybeans on China’s Dalian Exchange were down 0.23% while soybean meal was down 0.52%.