DTN Grain Open: Markets Rally as Weather Remains Concerning

Maturing corn. Photo: University of Illinois

Pre-6 a.m. Globex Prices: December corn is up 5 cents per bushel, November soybeans are up 6 1/2 cents, and September KC wheat is up 4 cents.

CME Globex Recap: Grain markets are stronger across the board, led by corn futures which are up over 1.5% in the September contract. Both the GFS and European models trended drier and warmer for mid-July overnight, adding anxiety for fund shorts which are still plentiful. Weather watchers are making some dire comparisons to below-trend analog years which is providing plenty of fodder for bulls.

Equities are lightly mixed around the globe overnight with U.S. futures mostly consolidating in recent ranges. Energy markets are mixed to lower as crude oil continues to be tethered to the $40.00 per barrel mark, unable to move too far away in either direction.

The U.S. Dollar Index is firmer, but has been trending lower of late, closing in on the June lows which were the lowest trade since mid-March. U.S. grain exports could use a bit more dollar weakness in the days and weeks ahead. Precious metals are firmer as gold consolidates just below its nine-year high set Wednesday.

OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial Average up 177.10 at 26,067.28 and the S&P 500 up 24.62 at 3,145.32 while the 10-Year Treasury yield ended at 0.653%. Early Thursday, the September DJIA futures are down 70 points.

Asian markets are higher with Japan’s Nikkei 225 up 90.64 (0.4%) and China’s Shanghai Composite up 47.15 points (1.39%). European markets are mixed with London’s FTSE 100 down 35.34 points (-0.57%), Germany’s DAX up 126.81 points (1.01%) and France’s CAC 40 up 1.36 points (0.03%).

The September Euro is down 0.001 at 1.130 and the September U.S. dollar index is up 0.087 at 96.455. The September 30-Year T-Bond is down 0/32nds, while August gold is up $2.10 at $1,822.70 and August crude oil is down $0.19 at $40.71. Soybeans on China’s Dalian Exchange were up 1.39% while soybean meal was up 0.1%.

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