DTN Early Word Grains 08/21 05:53
Row Crops Higher, Wheat Lower With Focus on Temps
December corn is up 3/4 cents per bushel, November soybeans are up 4 1/2
cents, and December K.C. wheat is down 1 1/2 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: December corn is up 3/4 cents per bushel, November
soybeans are up 4 1/2 cents, and December K.C. wheat is down 1 1/2 cents.
CME Globex Recap: Higher equity markets across Europe and the U.S. as
investors await the Federal Reserve meeting minutes from late-July which should
confirm discussion of several more interest rate cuts to keep doves and bulls
happy. Crude oil continues to stage a comeback after hitting calendar year lows
in early August with spot prices now moving above the 50 and 200-day moving
averages overnight. Grain futures are mixed overnight with higher row crops and
softer wheat. The Ag space seems to be more intently focusing on temperature
forecasts this week as lead times are now probing out into mid and
late-September. In general, below normal temperatures are expected from NOAA
for the month of September, but the DTN forecast sees warmer trends with much
of the Midwest 1-2 degrees above normal for the month as a whole. Current corn
and soybean yield ideas are contingent upon normal frost dates, or even late
frost dates in many cases. If an early frost/freeze were to make its way into
the Upper-Midwest, yield potential could be cut drastically. It is likely we
will see markets react to model changes on temperatures heading into September
in much the way we see markets react to rainfall forecasts in June and July.
OUTSIDE MARKETS: Previous closes Tuesday showed the Dow Jones Industrial
Average down 173.35 at 25,962.44 and the S&P 500 down 23.14 at 2,923.65 while
the 10-Year Treasury yield ended at 1.561%. Early Wednesday, the September DJIA
futures are up 162 points. Asian markets are mixed with Japan's Nikkei 225 down
58.65 (-0.28%) and China's Shanghai Composite up 0.33 points (0.01%). European
markets are higher with London's FTSE 100 up 71.33 points (1%), Germany's DAX
up 137.99 points (1.18%) and France's CAC 40 up 81.23 points (1.52%). The
September Euro is down 0.000 at 1.110 and the September U.S. dollar index is up
0.022 at 98.085. The September 30-Year T-Bond is down 23/32nds, while December
gold is down $6.20 at $1,509.50 and October crude oil is up $0.46 at $56.59.
Soybeans on China's Dalian Exchange were -0.18% while soybean meal was up 0.45%.
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