Pre-6 a.m. Globex Prices: December corn is down 3 cents per bushel, November soybeans are down 11 3/4 cents, and September KC wheat is down 3 1/4 cents.
CME Globex Recap: Grains are weaker across the board as contracts correct the solid gains witnessed Monday. Winter wheat contracts have impressive breakouts but all other grain markets are largely rangebound as we await further fundamental input from the USDA next week.
Equity markets are mostly higher overnight with U.S. futures pointed at a higher open later Tuesday morning. Investors seem to be breathing a sigh of relief at the recovery in Chinese stocks following the government’s meeting and promise of additional targeted support for the Chinese economy.
There is still a great deal of concern over how the Chinese government will treat private companies and the degree to which foreign entities will want to take a risk of operating in China or with Chinese companies. Energy markets are firmer overnight, recovering a bit more from Monday’s washout which saw spot crude oil challenging its 50-day moving average.
The U.S. Dollar Index is weaker overnight, continuing its short-term downtrend dating back to the July 21 reversal. Metal markets are all lower overnight with copper leading losses.
OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial Average down 97.31 at 34,838.16 and the S&P 500 down 8.10 at 4,395.26 while the 10-Year Treasury yield ended at 1.174%. Early Tuesday, the September DJIA futures are up 148 points.
Asian markets are lower with Japan’s Nikkei 225 down 139.19 (-0.5%) and China’s Shanghai Composite down 16.29 points (-0.47%). European markets are higher with London’s FTSE 100 up 20.6 points (0.29%), Germany’s DAX up 8.67 points (0.06%) and France’s CAC 40 up 51.71 points (0.77%).
The September Euro is up 0.001 at 1.190 and the September U.S. dollar index is down 0.085 at 91.980. The September 30-Year T-Bond is down 12/32nds, while December gold is down $9.90 at $1,812.30 and September crude oil is up $0.49 at $71.75. Soybeans on China’s Dalian Exchange were down 0.62% while soybean meal was up 0.25% and corn was up 1.05%.