DTN Grain Open: Weaker as Focus Remains Weather

Tasseling corn. Photo: Justin Ballew, Clemson University

Pre-6 a.m. Globex Prices: September corn is down 3 1/2 cents per bushel, November soybeans are down 5 cents, and September KC wheat is down 1/2 cent.

CME Globex Recap: Grains are mostly weaker overnight, led by corn and soybean oil after early gains were relinquished Tuesday evening. Producer selling and a beneficial turn in the weather forecasts remain the biggest risks to the corn and soybean rallies continuing. A change in the models can occur every six hours, meaning producers need to stay vigilant with their marketing.

Global equities are mostly weaker with losses across Europe and U.S. futures pointed at a lower open. Investors seem torn between improving economic data and rising coronavirus cases, especially in states that recently lifted lockdown measures and reversed course in recent days.

The gains in Chinese equities Monday lifted stocks globally, and would be fitting, if they helped lead the global economy out of the downturn, considering the events at the beginning of the year. Energy markets are weaker overnight but crude oil has maintained strength above the $40 per barrel mark.

In addition, spot ethanol prices rallied to the highest level since Feb. 21 on Monday. Gold and silver are both weaker overnight as the latter remains in consolidation mode.

OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial Average up 459.67 at 26,287.03 and the S&P 500 up 49.71 at 3,130.01 while the 10-year Treasury yield ended at 0.684%. Early Tuesday, the September DJIA futures are down 279 points.

Asian markets are mixed with Japan’s Nikkei 225 down 99.75 (0.44%) and China’s Shanghai Composite up 12.46 points (0.37%). European markets are lower with London’s FTSE 100 down 79.71 points (1.27%), Germany’s DAX down 174.56 points (1.37%) and France’s CAC 40 down 61.27 points (1.21%).

The September euro is down 0.005 at 1.130 and the September U.S. Dollar Index is up 0.363 at 97.045. The September 30-year T-Bond is up 13/32nds, while August gold is down $9.90 at $1,783.60 and August crude oil is down $0.57 at $40.06. Soybeans on the China Dalian Exchange were down 0.86% while soybean meal was up 0.14%.

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