DTN Grain Open: Weaker on Demand, Improving Weather

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

CME Globex Recap: Global equity markets are mixed with trade-front negotiations encouraging but investors split on their post-Fed attitude. The Federal Reserve met market expectations Wednesday by cutting the fed funds rate by 25 basis points, but the post-meeting discussion made it clear the board is reluctant to cut rates further in 2019 or 2020.

However, markets are clearly more dovish than the Fed members as the fed funds futures market sees another 60 basis points of easing by the end of 2020. One thing is for certain, President Trump will keep up his pressure on Fed Chair Powell to maintain the incredibly accommodative stance on monetary policy.

Grains are mixed to weaker as the view on weather remains a non-threatening one for the United States into October while better rain chances surfaced Wednesday for northern Brazil. The next major USDA update won’t come until September 30 and the trend of recent quarterly stocks reports has not been a supportive one. Quality becoming an issue for U.S. spring wheat is not bullish export demand and a situation which bears watching, especially if Canada loses confidence in available quality.

OUTSIDE MARKETS: Previous closes Wednesday showed the Dow Jones Industrial Average up 36.28 at 27,147.08 and the S&P 500 up 1.03 at 3,005.70 while the 10-Year Treasury yield ended at 1.786%. Early Thursday, the December DJIA futures are down 61 points.

Asian markets are higher with Japan’s Nikkei 225 up 83.74 (0.38%) and China’s Shanghai Composite up 13.62 points (0.46%). European markets are higher with London’s FTSE 100 up 39.57 points (0.54%), Germany’s DAX up 26.71 points (0.22%) and France’s CAC 40 up 26.93 points (0.48%).

The December Euro is up 0.003 at 1.110 and the December U.S. dollar index is down 0.239 at 97.895. The December 30-Year T-Bond is unchanged, while December gold is down $11.90 at $1,503.90 and October crude oil is up $1.15 at $59.26. Soybeans on China’s Dalian Exchange were up 0.06% while soybean meal was up 0.03%.

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