DTN Early Word Grains

EARLY MORNING GLOBEX NET CHANGES: December corn is up 1 1/4 cents per bushel, November soybeans are up 4 1/2 cents, December KC wheat is down 1 3/4 cents, December Chicago wheat is down 1/4 cent and MIAX December Minneapolis wheat is down 0.0100 cents.

CME GLOBEX RECAP: Corn, soybean, and wheat futures all closed lower on Wednesday. Basis levels were mixed: corn and spring wheat strengthened, while soybean, hard red winter wheat, and soft red winter wheat remained steady. Overall, grain markets have trended lower this week. All three agricultural markets are suffering from a lack of fresh trading news. The market is anticipating a generally favorable USDA WASDE Report on Friday, which has contributed to the pause in volatility this week. Corn has seen strong demand news, with Wednesday’s EIA Petroleum Status Report showing increased ethanol production for the week ending September 5. Soybean futures traders are eagerly awaiting Friday’s report, as a potential yield cut could provide market support. Wheat continues to face pressure from ongoing global production and harvest activity. Additionally, U.S. wheat prices at the Gulf are losing competitiveness compared to Russian and European offerings.

OUTSIDE MARKETS: The previous closes on Wednesday showed the Dow Jones Industrial Average down 220.42 at 45,490.92 and the S&P 500 up 19.43 at 6,532.04. The 10-Year Treasury yield ended at 4.032%. Early Thursday, the September Dow Jones Futures are up 65 points. European markets are higher with the spot futures of London’s FTSE 100 trading up 0.35%, spot futures of Germany’s DAX are trading up 0.08% and the spot futures of France’s CAC 40 Index are up 0.74%. Asian markets are higher with Japan’s Nikkei 225 Index up 1.22% and China’s Shanghai Composite Index up 1.65%.

The September Euro is down 0.002 at 1.169, and the September U.S. Dollar Index is up 0.233 at 97.980.  The December 30-Year T-Bond is down 8/32nds, while December gold is down $23.60 at $3,658.40, and October crude oil is down $0.51 at $63.16. On China’s Dalian Exchange, November corn was steady, while November soybeans were down 0.23%, January soybean meal was up 0.36% and November Malaysian Palm Oil was trading up 0.91%.

MORE COMMODITY-SPECIFIC COMMENTS

Corn futures are up 1 1/2 cents early Thursday, with the December contract at $4.18 1/2 per bushel. On Wednesday, the national average basis for corn was 1 cent stronger at 41 cents under the December futures contract, while the DTN National Corn Index was down 2 cents at $3.76. Thursday’s USDA Weekly Export Sales Report is expected to show 900,000-2.4 million metric tons (mmt) worth of business for the week ending September 4. On Wednesday, the EIA Petroleum Status Report showed that for the week ending September 5, U.S. ethanol production averaged 1.10 million barrels per day (bpd), compared with last week’s 1.07 million bpd, and up from last year’s 1.08 million bpd. The four-week average output at 1.08 million bpd was slightly above 1.07 million bpd from the same time last year. Domestic ethanol inventories ended the week at 22.8 million barrels, compared with 22.6 million a week ago, and 23.7 million a year ago.

Soybean futures are 4 3/4 cents higher early Thursday, with November at $10.30 per bushel. On Wednesday, the national average basis for soybeans was steady at 78 cents under the November futures contract, while the DTN National Soybean Index was down 6 cents at $9.47. Thursday’s USDA Weekly Export Sales Report is expected to show between 400,000 and 1.6 mmt of sales for the week ending September 4. Chinese importers have booked around 7.4 mmt of mainly South American #soybeans for October shipment, covering 95% of China’s projected demand for the month and 1 million tons for November, or about 15% of expected imports, according to two Asia-based traders.

Wheat futures are 1/2 cent higher early Thursday morning, with December contracts at $5.15 1/2 per bushel. On Wednesday, the national average basis for hard red winter (HRW) wheat was steady at 77 cents under the December futures contract, while the DTN National Hard Red Winter Wheat Index was down 3 cents at $4.30. The national average basis for hard red spring (HRS) wheat was unchanged at 54 cents under the MIAX Minneapolis December futures contract, and the DTN National Hard Red Spring Wheat Index was down 4 cents at $5.15. Thursday’s USDA Weekly Export Sales Report is expected to show 300,000-650,000 metric tons worth of wheat sales for the week ending September 4. Russia’s wheat output estimate is at 87.2 mmt, up from 86.1 mmt previously, according to grain consultancy SovEcon.

CORN:

SOYBEANS:

WHEAT: