Pre-6 a.m. Globex Prices: March corn is up 3 1/4 cents per bushel, March soybeans are up 2 1/4 cents, and March KC wheat is up 1 cent.
CME Globex Recap: Grain markets are mostly higher overnight with corn and soybean oil leading gains. If Monday’s gains can be added to Tuesday, grain bulls will be able to breathe a sigh of relief following Friday’s washout.
Quietly mixed equity markets overnight although Asian shares posted larger declines after the Chinese central bank tightened financial conditions and an official raised concerns that loose liquidity could inflate an asset bubble according to the Financial Times. The People’s Bank of China withdrew $12 billion of net liquidity through open market operation which firmed interest rates slightly.
With the volatile nature of Wall Street lately, plenty of people wonder if the massive amount of liquidity surging through the U.S. economy is helping to inflate an asset bubble in stocks as well. Energy markets are firmer overnight with crude oil on the verge of moving back over $53.00 per barrel. The U.S. Dollar Index is firmer and precious metals are weaker.
OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial Average down 36.98 at 30,960.00 and the S&P 500 up 13.89 at 3,841.47 while the 10-Year Treasury yield ended at 1.04%. Early Tuesday, the March DJIA futures are down 16 points.
Asian markets are lower with Japan’s Nikkei 225 down 276.11 (-0.96%) and China’s Shanghai Composite down 54.81 points (-1.51%). European markets are higher with London’s FTSE 100 up 35.27 points (0.53%), Germany’s DAX up 193.8 points (1.42%) and France’s CAC 40 up 52.36 points (0.96%).
The March Euro is down 0.001 at 1.210 and the March U.S. dollar index is up 0.042 at 90.415. The March 30-Year T-Bond is down 5/32nds, while February gold is down $3.10 at $1,852.10 and March crude oil is up $0.24 at $53.01. Soybeans on China’s Dalian Exchange were up 0.81% while soybean meal was up 0.06% and corn was down 0.39%.