DTN Grain Open: Markets Join Commodity-Wide Sell-Off

    The Port of Rosedale - Rosedale, Mississippi - Mississippi River ©Debra L Ferguson Stock Photography

    Pre-6 a.m. Globex Prices: December corn is down 8 1/4 cents per bushel, November soybeans are down 11 1/4 cents, and December KC wheat is down 13 1/4 cents.

    CME Globex Recap: Grains are not insulated from the asset-wide selling, and when combined with more favorable outlooks in the U.S. Southern Plains, South America and Black Sea, the overnight pressure seems a bit easier to explain.

    Corn and soybeans are looking at their first meaningful corrective phase since the end of September, which could be a healthy thing from a long-term perspective. Spreads are relaxing a bit on the sell-off but whether cash follows suit will be important.

    Equity markets around the globe are sharply weaker overnight with U.S. futures pointing toward heavy selling at the Wednesday cash open. Financial media continue to point toward rising coronavirus cases around the world, and the expected lockdown measures that could be forthcoming, hurting the economic recovery at the same time politicians struggle to agree on a stimulus plan in the United States.

    Energy markets are sharply weaker overnight as well with crude oil back below $38.00 per barrel, off over 4.0% on the session. Precious metals are no haven at the moment with both gold and silver down 0.7% to 1.2% overnight.

    OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial Average down 222.19 at 27,463.19 and the S&P 500 down 10.29 at 3,400.97 while the 10-year Treasury yield ended at 0.778%. Early Wednesday, the December DJIA futures are down 449 points.

    Asian markets are mixed with Japan’s Nikkei 225 down 78.39 (0.32%) and China’s Shanghai Composite down 67.29 points (0.29%). European markets are lower with London’s FTSE 100 down 78.85 points (1.38%), Germany’s DAX down 318.45 points (2.64%) and France’s CAC 40 down 110.64 points (2.34%).

    The December euro is down 0.007 at 1.180 and the December U.S. Dollar Index is up 0.468 at 93.395. The December 30-year T-Bond is up 23/32nds, while December gold is down $13.50 at $1,898.40 and December crude oil is down $1.58 at $37.99. Soybeans on China’s Dalian Exchange were up 1.3% while soybean meal was down 0.22% and corn was up 0.31%.

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