DTN Early Word Grains 09/19 05:54
Grains Weaker on Demand, Improving Weather
December corn is down 1/2 cent per bushel, November soybeans are down 1 3/4
cents, and December K.C. wheat is down 1/4 cent.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: December corn is down 1/2 cent per bushel, November
soybeans are down 1 3/4 cents, and December K.C. wheat is down 1/4 cent.
CME Globex Recap: Global equity markets are mixed with trade-front
negotiations encouraging but investors split on their post-Fed attitude. The
Federal Reserve met market expectations Wednesday by cutting the fed funds rate
by 25 basis points, but the post-meeting discussion made it clear the board is
reluctant to cut rates further in 2019 or 2020. However, markets are clearly
more dovish than the Fed members as the fed funds futures market sees another
60 basis points of easing by the end of 2020. One thing is for certain,
President Trump will keep up his pressure on Fed Chair Powell to maintain the
incredibly accommodative stance on monetary policy. Grains are mixed to weaker
as the view on weather remains a non-threatening one for the United States into
October while better rain chances surfaced Wednesday for northern Brazil. The
next major USDA update won't come until September 30 and the trend of recent
quarterly stocks reports has not been a supportive one. Quality becoming an
issue for U.S. spring wheat is not bullish export demand and a situation which
bears watching, especially if Canada loses confidence in available quality.
OUTSIDE MARKETS: Previous closes Wednesday showed the Dow Jones Industrial
Average up 36.28 at 27,147.08 and the S&P 500 up 1.03 at 3,005.70 while the
10-Year Treasury yield ended at 1.786%. Early Thursday, the December DJIA
futures are down 61 points. Asian markets are higher with Japan's Nikkei 225 up
83.74 (0.38%) and China's Shanghai Composite up 13.62 points (0.46%). European
markets are higher with London's FTSE 100 up 39.57 points (0.54%), Germany's
DAX up 26.71 points (0.22%) and France's CAC 40 up 26.93 points (0.48%). The
December Euro is up 0.003 at 1.110 and the December U.S. dollar index is down
0.239 at 97.895. The December 30-Year T-Bond is unchanged, while December gold
is down $11.90 at $1,503.90 and October crude oil is up $1.15 at $59.26.
Soybeans on China's Dalian Exchange were up 0.06% while soybean meal was up
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