DTN Grain Open: Markets Consolidate Recent Rallies

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6:00 a.m. CME Globex: May corn is down 4 cents per bushel, May soybeans are down 9 1/2 cents, and May KC wheat is down 6 1/4 cents.

CME Globex Recap: Financial markets are weaker around the globe, despite the fact the U.S. Senate approved fiscal stimulus legislation worth $2 trillion to help sustain the economy during the coronavirus pandemic. The vote had bipartisan support and will now head to the House of Representatives for a final vote before it can be enacted by President Trump.

Speaking of President Trump, in comments Wednesday, he suggested if additional stimulus is needed to support the U.S. economy, he will simply go ask Congress for more. Once all these dollars start chasing goods, it would certainly appear we are headed for an inflationary environment, which should be a boost for commodities.

Grains are weaker across the board as recent gains are consolidated up against resistance points. Traders will be anxious to get their hands on weekly export sales to see if any additional Chinese business was conducted.

We are also drawing closer to the March 31 USDA reports which will inject even more volatility into our markets. Grains continue to perform well relative to other asset classes, all things considered.

OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial Average up 495.64 at 21,200.55 and the S&P 500 up 28.23 at 2,447.33 while the 10-Year Treasury yield ended at 0.858%. Early Thursday, the June DJIA futures are down 197 points.

Asian markets are lower with Japan’s Nikkei 225 down 882.03 (-4.51%) and China’s Shanghai Composite down 16.68 points (-0.6%). European markets are lower with London’s FTSE 100 down 106.82 points (-1.88%), Germany’s DAX down 200.22 points (-2.03%) and France’s CAC 40 up 71.67 points (-1.62%).

The June Euro is up 0.007 at 1.100 and the June U.S. dollar index is down 0.592 at 100.405. The June 30-Year T-Bond is up 1-5/32nds, while April gold is down $3.80 at $1,629.60 and May crude oil is down $0.56 at $23.93. Soybeans on China’s Dalian Exchange were up 2.88% while soybean meal was down 1.52%.

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