DTN Grain Open: Market Rout Continues

Pre-6 a.m. Globex Prices: July corn is down 15 3/4 cents per bushel, July soybeans are down 11 1/2 cents, and July KC wheat is down 9 1/2 cents.

CME Globex Recap: Grains are sharply lower again overnight led by corn and soybean oil which are off 2.5-3.0%. New crop corn and soybeans are testing key support this week, and if it doesn’t hold, could bring on further liquidation.

Equity markets are mixed to lower overnight with U.S. futures pointing at a modestly lower open later Thursday morning. The conclusion of the two-day FOMC meeting Wednesday brought with it a more hawkish tone out of the Fed board than was expected. Discussions about quantitative easing tapering and rate-hikes dominated talks among the governors.

The Fed still doesn’t see the first rate hike of 25 basis points until 2023, but the continued upward march in inflation statistics could bring that on faster than expected. Energy markets are weaker overnight while the U.S. Dollar Index is firmer. Precious metals are mixed to weaker.

OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial Average down 265.66 at 34,033.67 and the S&P 500 down 22.89 at 4,246.59 while the 10-Year Treasury yield ended at 1.569%. Early Thursday, the September DJIA futures are down 105 points.

Asian markets are mixed with Japan’s Nikkei 225 down 272.68 (-0.93%) and China’s Shanghai Composite up 7.28 points (0.21%). European markets are lower with London’s FTSE 100 down 30.85 points (-0.43%), Germany’s DAX down 11.97 points (-0.08%) and France’s CAC 40 down 2.81 points (-0.04%).

The September Euro is down 0.009 at 1.200 and the September U.S. dollar index is up 0.572 at 91.780. The September 30-Year T-Bond is up 11/32nds, while August gold is down $61.50 at $1,799.90 and July crude oil is down $0.15 at $72.00.

Soybeans on China’s Dalian Exchange were down -1.4% while soybean meal was down -0.66% and corn is down -0.15%. Malaysian palm oil settled down -0.84%.

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