DTN Early Word Grains 10/28 05:54
Grains Join Commodity-Wide Sell-Off
December corn is down 8 1/4 cents per bushel, November soybeans are down 11
1/4 cents, and December KC wheat is down 13 1/4 cents.
DTN Contributing Analyst
Pre-6 a.m. Globex Prices: December corn is down 8 1/4 cents per bushel,
November soybeans are down 11 1/4 cents, and December KC wheat is down 13 1/4
CME Globex Recap:
Equity markets around the globe are sharply weaker overnight with U.S.
futures pointing toward heavy selling at the Wednesday cash open. Financial
media continue to point toward rising coronavirus cases around the world, and
the expected lockdown measures that could be forthcoming, hurting the economic
recovery at the same time politicians struggle to agree on a stimulus plan in
the United States. Energy markets are sharply weaker overnight as well with
crude oil back below $38.00 per barrel, off over 4.0% on the session. Precious
metals are no haven at the moment with both gold and silver down 0.7% to 1.2%
overnight. Grains are not insulated from the asset-wide selling, and when
combined with more favorable outlooks in the U.S. Southern Plains, South
America and Black Sea, the overnight pressure seems a bit easier to explain.
Corn and soybeans are looking at their first meaningful corrective phase since
the end of September, which could be a healthy thing from a long-term
perspective. Spreads are relaxing a bit on the sell-off but whether cash
follows suit will be important.
Previous closes on Tuesday showed the Dow Jones Industrial Average down
222.19 at 27,463.19 and the S&P 500 down 10.29 at 3,400.97 while the 10-year
Treasury yield ended at 0.778%. Early Wednesday, the December DJIA futures are
down 449 points. Asian markets are mixed with Japan's Nikkei 225 down 78.39
(0.32%) and China's Shanghai Composite down 67.29 points (0.29%). European
markets are lower with London's FTSE 100 down 78.85 points (1.38%), Germany's
DAX down 318.45 points (2.64%) and France's CAC 40 down 110.64 points (2.34%).
The December euro is down 0.007 at 1.180 and the December U.S. Dollar Index is
up 0.468 at 93.395. The December 30-year T-Bond is up 23/32nds, while December
gold is down $13.50 at $1,898.40 and December crude oil is down $1.58 at
$37.99. Soybeans on China's Dalian Exchange were up 1.3% while soybean meal was
down 0.22% and corn was up 0.31%.
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