DTN Early Word Grains 06/19 05:58
Grains Weaker as Prices Consolidate, Profits Taken
July corn is down 8 1/2 cents, July soybeans are down 3 3/4 cents, and July
K.C. wheat is down 10 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: July corn is down 8 1/2 cents, July soybeans are down 3
3/4 cents, and July K.C. wheat is down 10 cents.
CME Globex Recap: Equities are easing a bit Wednesday morning after Tuesday's
surge on the back of the European Central Bank signaling it will launch another
round of stimulus should the climate of weak growth and political uncertainty
fail to lift in coming months. Grains are weaker for the second session in a
row as profits continue to be taken and traders take stock of the environment
in front of another round of high-risk reports next week. Traders seem to want
to trade every aspect of this market immediately from depressed acres to the
potential for sub-trend yields and finally to potential demand destruction.
Price action, however, would suggest participants would do well to trade what
is in front of them and what can be quantified before trying to peg final
ending stocks in August of 2020. Weekly ethanol production later Wednesday
morning and export sales Thursday will be important demand gauges as end users
spend a bit more time with $4.50 futures.
OUTSIDE MARKETS: Previous closes Tuesday showed the Dow Jones Industrial
Average up 353.01 at 26,465.54 and the S&P 500 up 28.08 at 2,889.67 while the
10-Year Treasury yield ended at 2.06%. Early Wednesday, the June DJIA futures
are down 1 point. Asian markets are higher with Japan's Nikkei 225 up 361.16
(1.72%) and China's Shanghai Composite up 27.64 points (0.96%). European
markets are lower with London's FTSE 100 down 27.5 points (-0.37%), Germany's
DAX down 4.65 points (-0.04%) and France's CAC 40 down 8.75 points (-0.16%).
The September Euro is up 0.001 at 1.130 and the September U.S. dollar index is
down 0.068 at 97.085. The September 30-Year T-Bond is down 9/32nds, while
August gold is down $5.30 at $1,345.40 and July crude oil is down $0.08 at
$53.82. Soybeans on China's Dalian Exchange were down -0.84% while soybean meal
was down -1.98%.
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