6:00 a.m. CME Globex: March corn is up 3 cents per bushel, March soybeans are down 1 1/4 cents, and March KC wheat is up 1 cent.
CME Globex Recap: Equity markets are higher around the globe with U.S. equities eyeing fresh record highs, supported by the relative calm on the global trade front. In focus overnight was Chinese economic data which showed growth in the second largest economy slowing to the lowest rate since 1990.
Gross domestic product in China grew at 6.1% in 2019, matching the analyst estimate but also revealing an economy under pressure. GDP growth between October and December was 6.0% from the year before. This was undoubtedly part of the willingness to do something on “phase-one” with the U.S., even if many on the U.S. side aren’t completely sold on the agreement.
Grains are mostly recovering overnight after a wake-up call on Thursday. The reaction on social media to the CBOT losses was telling and it seemed to reveal a bit more length at the farm gate level than many were previously willing to admit. Trends are still up in wheat, although corn and soybeans have some major blemishes on their charts that need to see recovery soon to avoid revisiting November/December lows.
OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial Average up 267.42 at 29,297.64 and the S&P 500 up 27.52 at 3,289.29 while the 10-Year Treasury yield ended at 1.809%. Early Friday, the March DJIA futures are up 83 points.
Asian markets are higher with Japan’s Nikkei 225 up 108.13 (0.45%) and China’s Shanghai Composite up 1.41 points (0.05%). European markets are higher with London’s FTSE 100 up 64.92 points (0.85%), Germany’s DAX up 125.65 points (0.94%) and France’s CAC 40 up 70.78 points (1.17%).
The March Euro is down 0.001 at 1.120 and the March U.S. dollar index is up 0.073 at 97.135. The March 30-Year T-Bond is down 21/32nds, while February gold is up $5.60 at $1,556.10 and February crude oil is up $0.31 at $58.83. Soybeans on China’s Dalian Exchange were down 0.17% while soybean meal was down 0.22%.