Pre-6 a.m. Globex Prices: December corn is up 3 1/2 cents per bushel, November soybeans are up 6 1/4 cents, and December KC wheat is steady.
CME Globex Recap: A strong finish to the week in grain markets appears in order with corn futures making new highs for the move overnight. It is undeniable the new-found speculative interest in the ag space which has brought outside money in a meaningful way for the first time in several years. It has not paid to fade the rally in our markets for two months, and with harvest over halfway complete, we’re not sure the it pays now either.
Mixed trade in equity markets overnight, although European markets have pushed to gains and U.S. futures are pointing toward a higher open. Stimulus talks in the United States are moving forward at a snail’s pace with little chance of a major package occurring before the November election in our opinion.
Energy markets are weaker, although spot crude oil futures have pushed back above 40.00 per barrel as well as the 50 and 100-day moving averages at 40.59 and 40.11, respectively. The U.S. Dollar Index is trading easier overnight while precious metals are firmer with silver up over 1.3%.
OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial Average down 19.80 at 28,494.20 and the S&P 500 down 5.33 at 3,488.67 while the 10-Year Treasury yield ended at 0.731%. Early Friday, the December DJIA futures are up 57 points.
Asian markets are mixed with Japan’s Nikkei 225 down 96.6 (-0.41%) and China’s Shanghai Composite up 4.18 points (0.13%). European markets are higher with London’s FTSE 100 up 40 points (0.69%), Germany’s DAX up 73.8 points (0.58%) and France’s CAC 40 up 55.51 points (1.15%).
The December Euro is up 0.002 at 1.170 and the December U.S. dollar index is down 0.154 at 93.710. The December 30-Year T-Bond is up 3/32nds, while December gold is up $5.00 at $1,913.90 and November crude oil is down $0.36 at $40.60. Soybeans on China’s Dalian Exchange were up 1.76% while soybean meal was down 2.13%.