DTN Grain Open: Rally Continues on USDA Data, Weather Forecasts

Photo: University of Minnesota

Pre-6 a.m. Globex Prices: September corn is up 3 1/4 cents per bushel, November soybeans are up 4 1/2 cents, and September KC wheat is up 2 1/4 cents.

CME Globex Recap: Grain markets are higher across the board overnight, led by corn and soybean meal as buyers follow through from the solid trade Tuesday. Gains on Tuesday in corn were the largest in the life of the contract, highlighting how sleepy trade has been the last several months.

With a smaller acreage base, yield estimates will take greater focus with weather forecasts moving markets intra-day. Farm marketing should accelerate at these prices and higher as producers play catch-up following the lowest new crop prices in over a decade this spring.

Lightly mixed equity trade overnight with U.S. futures pointing toward a quiet open. Investors were encouraged by data from China showing a second straight month of manufacturing growth as the world’s second largest economy continues to recover from coronavirus.

Energy markets are higher with crude oil rallying sharply overnight by over 3.0% and reclaiming the $40 per barrel mark. The 200-day moving average sits just overhead for spot crude at $44.27 per barrel. Precious metals are higher overnight, led by silver which is up 0.88%.

OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial Average up 217.08 at 25,812.88 and the S&P 500 up 47.05 at 3,053.24 while the 10-Year Treasury yield ended at 0.653%. Early Wednesday, the September DJIA futures are down 17 points.

Asian markets are mixed with Japan’s Nikkei 225 down 166.41 (-0.75%) and China’s Shanghai Composite up 41.31 points (1.38%). European markets are higher with London’s FTSE 100 up 13.93 points (0.23%), Germany’s DAX up 80.79 points (0.66%) and France’s CAC 40 down 2.03 points (-0.04%).

The September Euro is down 0.001 at 1.120 and the September U.S. dollar index is up 0.001 at 97.350. The September 30-Year T-Bond is down 26/32nds, while August gold is up $4.70 at $1,805.20 and August crude oil is up $1.21 at $40.48. Soybeans on China’s Dalian Exchange were up 0.72% while soybean meal was up 1.81%.

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