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DTN Early Word Grains 03/21 05:54
Grains Higher Inside Ranges as Flooding, USDA Loom Large
May corn is up 1 cent per bushel, May soybeans are up 1 3/4 cents, and May
K.C. wheat is up 2 1/4 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: May corn is up 1 cent per bushel, May soybeans are up 1
3/4 cents, and May K.C. wheat is up 2 1/4 cents.
CME Globex Recap: Equities are mixed to weaker overnight despite the dovish
tone from the Federal Reserve at their conclusion of their meeting Wednesday.
The Fed indicated they will refrain from raising rates the rest of the year in
the face of waning economic momentum in the U.S. and abroad. In addition, the
fed-dot plot sees only one interest rate increase in 2020. Even though this is
likely to lead to easier money for longer, investors must have been more
concerned about the slow growth part of the equation as equities reacted
negatively on Wednesday. Grains still have their attention on flooding and
trade talks, neither of which are quantifiable today. Ranges have likely been
set ahead of the March 29 USDA reports as heavy shorts held by funds go
head-to-head with the farmer who is uninterested in selling these prices.
OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial
Average down 141.71 at 25,745.67 and the S&P 500 down 8.34 at 2,832.57 while
the 10-Year Treasury yield ended at 2.535%. Early Thursday, the June DJIA
futures are down 22 points. Asian markets are higher with Japan's Nikkei 225 up
42.07 (0.2%) and China's Shanghai Composite up 10.81 points (0.35%). European
markets are mixed with London's FTSE 100 up 27.6 points (0.38%), Germany's DAX
down 38.35 points (0.33%) and France's CAC 40 down 5.24 points (0.1%). The June
Euro is down 0.004 at 1.150 and the June U.S. dollar index is up 0.324 at
95.525. The June 30-Year T-Bond is up 8/32nds, while April gold is up $15.90 at
$1,317.60 and May crude oil is down $0.12 at $60.11. Soybeans on China's Dalian
Exchange were down -0.06% while soybean meal was up 0.08%.
May corn finished up ¼ of a cent, May beans up 2 cents, and May wheat up 8 1/4 cents. Dovish comments by the Fed were the biggest news around the trade today. The weaker dollar helped wheat find some more support that created some buying that spilled over into corn and beans. Headlines about a trade deal coming along nicely according to President Trump didn’t bring out buyers. The news is old and the market is tired of it. Today was the 7th consecutive day with no daily export sale announced and the bearish impact seemed to be limited due to the rally in wheat. According to Reuters the US producer has found some company in the Argentine farmer who is not marketing what is expected to be a 55MMT soybean crop because the Chicago board is too low. Managed money shorts, no export announcements, and delays regarding the trade deal are weighing on prices and farmers continue holding out for good (read bullish) news.