DTN Early Word Grains 01/29 05:58
Grains Lower, Soy Higher With Focus on China
March corn is up 1/4 cent per bushel, March soybeans are up 5 1/2 cents, and
March KC wheat is down 3 1/4 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: March corn is up 1/4 cent per bushel, March soybeans
are up 5 1/2 cents, and March KC wheat is down 3 1/4 cents.
CME Globex Recap: Global equity markets are mostly higher overnight as
investors continue to respond to the latest coronavirus headlines. If the
drastic travel measures China has taken to contain the virus work, it could be
a completely different situation in 6-10 days. If the coronavirus becomes
SARS-like, however, the disease could be with us for the foreseeable future.
Investors will also be looking forward to the end of the two-day FOMC meeting
which is expected to see an unchanged policy decision from the Federal Reserve.
Grains are mixed overnight with corn and wheat lower while soybeans and bean
oil post gains. News of a possible African Swine Fever vaccine seemed to
support soybean prices overnight. Getting rid of one major disease outbreak in
China would certainly be a positive, even if it is the one which only affects
hogs. Wheat markets remain soft as rumors of China buying wheat from competitor
origins are still in the market. There are plenty of longs coming late to the
party in the wheat market which will be tested soon.
OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial
Average up 187.05 at 28,722.85 and the S&P 500 up 32.61 at 3,243.63 while the
10-Year Treasury yield ended at 1.641%. Early Wednesday, the March DJIA futures
are up 72 points. Asian markets are higher with Japan's Nikkei 225 up 163.69
(0.71%) and China's Shanghai Composite closed. European markets are higher with
London's FTSE 100 up 10.46 points (0.15%), Germany's DAX up 5.45 points (0.04%)
and France's CAC 40 up 17.55 points (0.3%). The March Euro is down 0.002 at
1.100 and the March U.S. dollar index is up 0.085 at 97.920. The March 30-Year
T-Bond is up 10/32nds, while February gold is down $0.20 at $1,569.60 and March
crude oil is up $0.53 at $54.01. The Dalian Exchange remains closed.
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