DTN Grain Open: Lower as Crude Enthusiasm Fades

©Debra L Ferguson Stock Images

6:00 a.m. CME Globex: December corn is down 2 3/4 cents per bushel, November soybeans are down 2 1/2 cents, and December K.C. wheat is down 2 1/2 cents.

CME Globex Recap: After the incredible volatility in energy markets to begin the week, markets are much more subdued on Tuesday as crude oil gives back over 1.0% of its Monday rally. Helping ease concerns were comments from President Trump in which he said he did not want to go to war with Iran on Saudi Arabia’s behalf. In addition, Saudi Arabia made it seem as though some of the damaged production could be back online relatively soon.

Elsewhere, President Trump announced an “initial” deal on trade barriers with Japan on Monday, but the chief executive of the U.S. Chamber of Commerce expressed doubt on the prospect of an interim trade deal with China.

Grain markets are weaker across the board, giving back the crude-inspired strength from Monday as beneficial finishing weather looks to stay with the Midwest through the end of September. Delays to North American wheat harvest remain a concern but not one spurring covering by the record managed fund short just yet. Row crop harvest has begun in the Midwest but this should be one of the more drawn out affairs in recent memory.

OUTSIDE MARKETS: Previous closes Monday showed the Dow Jones Industrial Average down 142.70 at 27,076.82 and the S&P 500 down 9.43 at 3,007.39 while the 10-Year Treasury yield ended at 1.841%. Early Tuesday, the September DJIA futures are down 24 points.

Asian markets are mixed with Japan’s Nikkei 225 up 13.03 (0.06%) and China’s Shanghai Composite down 52.64 points (-1.74%). European markets are mixed with London’s FTSE 100 up 15.2 points (0.21%), Germany’s DAX down 17.6 points (-0.14%) and France’s CAC 40 up 6.31 points (0.11%).

The September Euro is down 0.006 at 1.100 and the December U.S. dollar index is up 0.015 at 98.190. The December 30-Year T-Bond is up 10/32nds, while December gold is down $4.70 at $1,506.80 and October crude oil is down $0.78 at $62.12. Soybeans on China’s Dalian Exchange were up 0.64% while soybean meal was up 0.28%.

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