Pre-6 a.m. Globex Prices: May corn is up 5 3/4 cents per bushel, May soybeans are up 2 1/4 cents, and May KC wheat is up 3/4 cent.
CME Globex Recap: Despite the dollar strength, grains have rallied off the lows overnight. Floor leadership is coming from the corn market which has had a weak performance this week, possibly inciting some bottom picking heading into the weekend.
Weaker equity trade around the globe overnight with U.S. futures staring at a lower open. Markets seem somewhat dissatisfied with comments from Federal Reserve Chair Powell on Thursday when he said the U.S. Central Bank would be “patient” in the face of a temporary rise in inflation, signaling no immediate sense of alarm. Treasuries continued their selloff, boosting yields to new highs for the move.
Energy markets are higher overnight with crude oil back above $65.00 per barrel for the first time on the recovery. OPEC+ sticking to its crude oil production curbs has boosted the energy sector, allowing RBOB to trade back over $2.00 per gallon overnight. The U.S. Dollar Index has continued its rally overnight after breaking above the 50-day moving average the previous session.
OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial Average down 345.95 at 30,924.14 and the S&P 500 down 51.25 at 3,819.72 while the 10-Year Treasury yield ended at 1.55%. Early Friday, the March DJIA futures are down 49 points.
Asian markets are lower with Japan’s Nikkei 225 down 65.79 (-0.23%) and China’s Shanghai Composite down 1.5 points (-0.04%). European markets are lower with London’s FTSE 100 down 4.56 points (-0.07%), Germany’s DAX down 111.75 points (-0.81%) and France’s CAC 40 down 33.72 points (-0.58%).
The March Euro is down 0.003 at 1.190 and the March U.S. dollar index is up 0.321 at 91.965. The June 30-Year T-Bond is down 2/32nds, while April gold is down $7.30 at $1,693.40 and April crude oil is up $1.24 at $65.07. Soybeans on China’s Dalian Exchange were up 0.24% while soybean meal was down 0.5% and corn was up 1.12%.