6:00 a.m. CME Globex: December corn is down 1 3/4 cents per bushel, November soybeans are up 1 1/4 cents, and December K.C. wheat is down 2 1/2 cents.
CME Globex Recap: Equity markets are mostly lower overnight with the big news being China’s economy expanding at the slowest pace in about 30 years at 6% in the third quarter vs. a year earlier. Economists were expecting growth of 6.1% but missed expectations due to manufacturing and investment sentiment.
The other big headline this week was a deal on Brexit between Prime Minister Boris Johnson and the European Union with a monumental vote expected in Parliament on Saturday. A passing vote could see the drama which began back in 2016 finally sees resolution.
Grains are mostly lower with only soybeans and meal posting overnight gains. Market drivers remain the same with bushels lost in the winter storm and a lack of harvest progress supportive while demand news remains mostly bearish.
On Thursday, White House economic advisor Larry Kudlow said China’s $40-50 billion in agriculture purchases would “depend in part on private companies and market conditions.” Not exactly the answer our markets are looking for, or the tone of the deal set forth by the President last week. Export sales are delayed until later Friday morning and should help set the early tone.
OUTSIDE MARKETS: Previous closes Thursday showed the Dow Jones Industrial Average up 23.90 at 27,025.88 and the S&P 500 up 8.26 at 2,989.69 while the 10-Year Treasury yield ended at 1.757%. Early Friday, the December DJIA futures are down 17 points.
Asian markets are mixed with Japan’s Nikkei 225 up 40.82 (0.18%) and China’s Shanghai Composite down 39.19 points (-1.32%). European markets are lower with London’s FTSE 100 down 17.51 points (-0.24%), Germany’s DAX up 0.72 points (0.01%) and France’s CAC 40 down 23.82 points (-0.42%).
The December Euro is up 0.000 at 1.120 and the December U.S. dollar index is down 0.055 at 97.280. The December 30-Year T-Bond is down 8/32nds, while December gold is down $6.70 at $1,491.60 and November crude oil is up $0.20 at $54.13. Soybeans on China’s Dalian Exchange were up 0.41% while soybean meal was up 0.6%.