DTN Early Word Grains

DTN Early Word Grains

EARLY MORNING GLOBEX NET CHANGES: December corn is down 3/4 cent per bushel, November soybeans are up 1/4 cent, December KC wheat is up 3/4 cent, December Chicago wheat is down 1/2 cent, and MIAX December Minneapolis wheat is down 0.0075 cents.

CME GLOBEX RECAP: Soybean futures closed sharply lower, wheat finished weaker, while corn settled a few cents higher Tuesday. Traders are showing their reluctance to let the soybean market rise without any fresh trade news between the U.S. and China. The corn market is holding onto some key technical levels. The wheat market remains influenced by adequate global supplies and harvest activity. Soybean, HRW wheat, and spring wheat basis were weaker, while corn and soft red winter wheat basis remained steady Tuesday.

OUTSIDE MARKETS: The previous close on Tuesday showed the Dow Jones Industrial Average down 249.07 at 45,295.81 and the S&P 500 down 44.72 at 6,415.54. The 10-Year Treasury yield ended at 4.277%. Early Wednesday, the September Dow Jones Futures are down 15 points. European markets are higher with the spot futures of London’s FTSE 100 trading up 0.33%, spot futures of Germany’s DAX are trading up 0.61% and the spot futures of France’s CAC 40 Index are up 0.89%. Asian markets are lower with Japan’s Nikkei 225 Index down 0.88% and China’s Shanghai Composite Index down 1.16%. The September euro is up 0.002 at 1.167, and the September U.S. Dollar Index is down 0.162 at 98.185. The December 30-Year T-Bond is down 2/32nds, while December gold is up $10.80 at $3,603.00, and October crude oil is down $1.19 at $64.40. On China’s Dalian Exchange, November corn was down 0.41% while November soybeans were down 0.13%, January soybean meal was up 0.03% and November Malaysian Palm Oil was trading down 0.69%.

MORE COMMODITY-SPECIFIC COMMENTS

CORN:

Corn futures edged 3/4 of a cent lower early Wednesday morning, with the December contract at $4.23 1/2 per bushel. Technically, the December contract held a support test at the 50-day moving average near $4.14 3/4, posting the first consecutive closes above that level since late May. Traders will watch the 100-day moving average near $4.31, which the December contract has not touched since late May as well. On Tuesday, the national average basis for corn remained steady at 41 cents under the December futures contract, while the DTN National Corn Index increased 2 cents to $3.82. After Tuesday’s close, the USDA Crop Progress Report rated corn 69% good or excellent, down two points from a week earlier. The report showed 58% of the nation’s corn is in the dent stage, below the 60% 5-year average. Additionally, 15% of the crop is mature, down from 18% a year ago but above the 14% 5-year average. On Tuesday, the USDA Export Inspection Report indicated corn shipments of 1.40 million metric tons (mmt) for the week ended Aug. 28, an increase of 5.1% from the previous week and 46% higher than a year ago.

SOYBEANS:

Soybean futures are up 3 cents early Wednesday with November at $10.44 per bushel. Outside of a possible frost weather scare this week, fundamentally, the bears control the market. It’s no secret the market awaits a trade deal between the U.S. and China. It’s already reacting negatively to no news. Technically, prices keep retreating to chart support near $10.40. On Tuesday, the national average basis for soybeans was 4 cents weaker at 76 cents under the November futures contract, while the DTN National Soybean Index was down 17 cents at $9.65. After the close Tuesday, the USDA Crop Progress Report rated soybeans 65% good to excellent, four points below a week ago. The report showed 11% of the nation’s soybeans are dropping leaves, above a 10% 5-year average. On Tuesday, the USDA Export Inspection Report showed soybean shipments at 472,914 metric tons (mt) during the week ended Aug. 28. That was up 20.3% from a week earlier and 6% below a year ago.

WHEAT:

Wheat futures are trading 1 cent higher early Wednesday morning, with December contracts trading at $5.29 per bushel. On Tuesday, the national average basis for hard red winter (HRW) wheat was 9 cents weaker at 79 cents under the December futures contract, while the DTN National Hard Red Winter Wheat Index was down 17 cents at $4.33. The national average basis for hard red spring (HRS) wheat was 4 cents weaker at 54 cents under the MIAX Minneapolis December futures contract, and the DTN National Hard Red Spring Wheat Index was down 10 cents at $5.21. After the close Tuesday, the USDA Crop Progress Report rated spring wheat harvest 72% completed, slightly above a 5-year average of 71%.