DTN Grain Open: Markets Move Sharply Lower

On-farm grain bin. ©Debra L Ferguson Stock Photography

Pre-6 a.m. Globex Prices: March corn is down 11 1/2 cents per bushel, March soybeans are down 27 1/2 cents, and March KC wheat is down 7 cents.

CME Globex Recap: Grain markets are sharply lower overnight with losses being led by corn, soybeans and soy meal as wetter South American forecasts trip off a needed technical correction. Dalian commodity markets were also sharply weaker overnight and Paris milling wheat is off over 1.0% as the selloff stretches around the globe. Based on balance sheet fundamentals, end user pricing should surface once weak longs have been removed.

Global equity markets are steady to higher with all eyes on Washington D.C. ahead of President-elect Biden’s inauguration. The table has been set this week for another massive round of fiscal stimulus which should keep Wall Street happy for the time being. This seems to be offsetting the news deaths from the coronavirus in the United States surpassed 400,000 on Tuesday as the vaccination program remains slow.

Energy markets are firmer overnight with spot crude oil comfortably over $53.00 per barrel. The U.S. Dollar Index continues to hover just above the 90.00-handle area despite the calls for massive deficit spending. Many have pointed out how overcrowded the short side of the U.S. Dollar market has become.

OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial Average up 116.26 at 30,930.52 and the S&P 500 up 30.66 at 3,768.25 while the 10-Year Treasury yield ended at 1.092%. Early Wednesday, the March DJIA futures are up 61 points.

Asian markets are mixed with Japan’s Nikkei 225 down 110.2 (-0.38%) and China’s Shanghai Composite up 16.71 points (0.47%). European markets are higher with London’s FTSE 100 up 20.67 points (0.31%), Germany’s DAX up 87.75 points (0.64%) and France’s CAC 40 up 37.67 points (0.67%).

The March Euro is down 0.001 at 1.210 and the March U.S. dollar index is down 0.041 at 90.435. The March 30-Year T-Bond is down 4/32nds, while February gold is up $11.30 at $1,851.50 and February crude oil is up $0.52 at $53.50. Soybeans on China’s Dalian Exchange were down 2.39% while soybean meal was down 2.89% and corn down 0.94%.

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