DTN Early Word Grains 08/03 05:54
Grains Ease Overnight Following Monday Surge
December corn is down 3 cents per bushel, November soybeans are down 11 3/4
cents, and September KC wheat is down 3 1/4 cents.
DTN Contributing Analyst
Pre-6 a.m. Globex Prices: December corn is down 3 cents per bushel, November
soybeans are down 11 3/4 cents, and September KC wheat is down 3 1/4 cents.
CME Globex Recap: Equity markets are mostly higher overnight with U.S.
futures pointed at a higher open later Tuesday morning. Investors seem to be
breathing a sigh of relief at the recovery in Chinese stocks following the
government's meeting and promise of additional targeted support for the Chinese
economy. There is still a great deal of concern over how the Chinese government
will treat private companies and the degree to which foreign entities will want
to take a risk of operating in China or with Chinese companies. Energy markets
are firmer overnight, recovering a bit more from Monday's washout which saw
spot crude oil challenging its 50-day moving average. The U.S. Dollar Index is
weaker overnight, continuing its short-term downtrend dating back to the July
21 reversal. Metal markets are all lower overnight with copper leading losses.
Grains are weaker across the board as contracts correct the solid gains
witnessed Monday. Winter wheat contracts have impressive breakouts but all
other grain markets are largely rangebound as we await further fundamental
input from the USDA next week.
OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial
Average down 97.31 at 34,838.16 and the S&P 500 down 8.10 at 4,395.26 while the
10-Year Treasury yield ended at 1.174%. Early Tuesday, the September DJIA
futures are up 148 points. Asian markets are lower with Japan's Nikkei 225 down
139.19 (-0.5%) and China's Shanghai Composite down 16.29 points (-0.47%).
European markets are higher with London's FTSE 100 up 20.6 points (0.29%),
Germany's DAX up 8.67 points (0.06%) and France's CAC 40 up 51.71 points
(0.77%). The September Euro is up 0.001 at 1.190 and the September U.S. dollar
index is down 0.085 at 91.980. The September 30-Year T-Bond is down 12/32nds,
while December gold is down $9.90 at $1,812.30 and September crude oil is up
$0.49 at $71.75. Soybeans on China's Dalian Exchange were down 0.62% while
soybean meal was up 0.25% and corn was up 1.05%.
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