DTN Early Word Grains 07/23 05:53
Grains Rebound in Turnaround Tuesday Effort
December corn is up 3 1/4 cents per bushel, November soybeans are up 3 1/4
cents, and September K.C. wheat is up 5 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: December corn is up 3 1/4 cents per bushel, November
soybeans are up 3 1/4 cents, and September K.C. wheat is up 5 cents.
CME Globex Recap: Equity markets are higher around the globe Tuesday as
investors took solace in the Whitehouse and Congress reaching a deal on the
debt ceiling and avoiding another round of brinkmanship. In addition, the
European Central Bank will announce its rate decision on Thursday followed by
the U.S. Federal Reserve next week, both of which are expected to maintain
dovish policy overall or cut rates further. Grain markets are higher, bouncing
from Monday's selloff in class Turnaround Tuesday fashion. Weather remains
mostly benign, and until traders get confirmation on yield or acres from the
USDA in August, it will be difficult for bulls to rally support for higher
prices. Weekly demand indicators remain soft, a constant reminder for bulls
that supply and demand indicators remain a moving target. More discussion had
about how producers move remaining old crop bushels and the impact it will have
on cash markets with two months left before harvest begins.
OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial
Average up 17.70 at 27,171.90 and the S&P 500 up 8.42 at 2,976.61 while the
10-Year Treasury yield ended at 2.043%. Early Tuesday, the September DJIA
futures are up 68 points. Asian markets are higher with Japan's Nikkei 225 up
204.09 (0.95%) and China's Shanghai Composite up 12.97 points (0.45%). European
markets are higher with London's FTSE 100 up 49.63 points (0.66%), Germany's
DAX up 142.66 points (1.16%) and France's CAC 40 up 25.2 points (0.45%). The
September Euro is down 0.003 at 1.120 and the September U.S. dollar index is up
0.285 at 97.225. The September 30-Year T-Bond is down 8/32nds, while August
gold is down $8.10 at $1,418.80 and September crude oil is up $0.02 at $56.24.
Soybeans on China's Dalian Exchange were up 0.47% while soybean meal was -0.84%.
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