6:00 a.m. CME Globex: December corn is up 1/4 cent per bushel, November soybeans are down 1 cent, and December K.C. wheat is up 1 cent.
CME Globex Recap: Global equities are mostly higher after a rocky ride much of the week. U.S. and Chinese officials continue to meet in Washington, and White House advisor Larry Kudlow said there is a “little softening” in the mood between the two sides. Deputies on both sides are expected to pave the way for higher level talks in early October, but not schedule has yet been set. At the very least, markets are hopeful a shorter-term deal can be reached to avoid additional tariffs set to be implemented on October 15 and December 15 by President Trump.
Grains are mixed with wheat and corn higher while the soy complex posts light losses. More attention is being paid to the delayed harvest in the Northern Plains and Canadian Prairies, especially as quality continues to deteriorate. The U.S. spring wheat balance sheet could be one of usable supply and “unusable” supply with a larger than normal portion destined for feed channels.
The last thing the U.S. corn market needs at this juncture is additional competition in the feed bunk. Similarly, the last thing the spring wheat market needs is a lack of confidence from importers about commercials being able to secure quality. No cold air threats seen the next 16 days, seeing the Midwest through to October 5.
OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial Average down 52.29 at 27,094.79 and the S&P 500 up 0.06 at 3,006.73 while the 10-Year Treasury yield ended at 1.774%. Early Friday, the December DJIA futures are up 69 points.
Asian markets are higher with Japan’s Nikkei 225 up 34.64 (0.16%) and China’s Shanghai Composite up 7.17 points (0.24%). European markets are higher with London’s FTSE 100 up 0.81 points (0.08%), Germany’s DAX up 27.6 points (0.22%) and France’s CAC 40 up 28.84 points (0.51%).
The December Euro is down 0.001 at 1.110 and the December U.S. dollar index is up 0.053 at 97.900. The December 30-Year T-Bond is down 2/32nds, while December gold is up $5.60 at $1,511.80 and November crude oil is up $0.48 at $58.67. Soybeans on China’s Dalian Exchange were down 0.86% while soybean meal was down 0.21%.