6:00 a.m. CME Globex: March corn is down 1/4 cent per bushel, March soybeans are down 2 3/4 cents, and March KC wheat is down 3 1/4 cents.
CME Globex Recap: Mixed to weaker equity markets overnight as stimulus measures continue to be taken in China to help stave off a collapse in economic activity related to the coronavirus. A poll of economists by Bloomberg News think Q1 economic growth in China could fall to +4.0% vs. +5.9% pre-virus.
The consensus for full-year 2020 growth is +5.5-5.9% which is below China’s +6.0% long-term target. Much depends on whether the dip in growth is “V-shaped” or “U-shaped,” which could also have an effect on purchases related to the “phase-one” agreement with the United States.
Grain markets are weaker overnight as traders await the first round of data tables from the USDA Outlook Forum. USDA’s first estimates of the 2020/21 marketing year are not set in stone, and much depends on growing season weather, but getting the USDA’s interpretation of the “phase-one” agreement will be interesting.
Corn, soybean and spring wheat new crop prices are all tracking lower than a year ago for the February insurance pricing period.
OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial Average up 115.84 at 29,348.03 and the S&P 500 up 15.86 at 3,370.29 while the 10-Year Treasury yield ended at 1.57%. Early Thursday, the March DJIA futures are down 44 points.
Asian markets are higher with Japan’s Nikkei 225 up 78.45 (0.34%) and China’s Shanghai Composite up 54.75 points (1.84%). European markets are lower with London’s FTSE 100 down 3.26 points (-0.04%), Germany’s DAX down 19.2 points (-0.14%) and France’s CAC 40 down 10.32 points (-0.17%).
The March Euro is down 0.001 at 1.080 and the March U.S. dollar index is up 0.143 at 99.740. The March 30-Year T-Bond is up 11/32nds, while April gold is up $0.80 at $1,612.60 and March crude oil is up $0.18 at $53.47. Soybeans on China’s Dalian Exchange were down 0.79% while soybean meal was up 0.38%.