Pre-6 a.m. Globex Prices: July corn is up 1/2 cent per bushel, July soybeans are up 2 1/2 cents, and July KC wheat is up 1 1/4 cents.
CME Globex Recap: Grain markets are steady to higher across the board with favorable technical patterns emerging for many contracts. With the structure of most ag markets featuring sizable to near record short positions held by the managed funds, additional covering should support into the weekend and possibly into next week.
Another day, another rally in global equity markets which is becoming the norm as opposed to the exception investors had become so used to February through March. On Wednesday, the ADP private payroll report showed fewer jobs lost during the month of May than analysts had feared, setting the tone for a more optimistic May unemployment report from the government later Friday morning.
The jobs report will undoubtedly set the tone into the weekend. Higher energy markets with crude oil making fresh highs for the move. Precious metals are weaker.
OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial Average up 11.93 at 26,281.82 and the S&P 500 down 10.52 at 3,122.87 while the 10-Year Treasury yield ended at 0.82%. Early Friday, the June DJIA futures are up 290 points.
Asian markets are higher with Japan’s Nikkei 225 up 167.99 (0.74%) and China’s Shanghai Composite up 11.55 points (0.4%). European markets are higher with London’s FTSE 100 up 77.06 points (1.22%), Germany’s DAX up 253.72 points (2.04%) and France’s CAC 40 up 113.22 points (2.26%).
The June Euro is down 0.003 at 1.130 and the June U.S. dollar index is up 0.148 at 96.805. The September 30-Year T-Bond is down 25/32nds, while August gold is down $13.30 at $1,714.10 and July crude oil is up $0.62 at $38.03. Soybeans on China’s Dalian Exchange were down 1.24% while soybean meal was up 0.32%.