DTN Early Word Grains 06/20 06:01
Grains Mixed as Consolidative Trade Takes Hold
July corn is up 1 cent, July soybeans are down 2 1/2 cents, and July K.C.
wheat is down 1 1/2 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: July corn is up 1 cent, July soybeans are down 2 1/2
cents, and July K.C. wheat is down 1 1/2 cents.
CME Globex Recap: Global equities are extending their rally into Thursday as
the central banks of the world continue to stand by easier monetary policies.
The FOMC of the Federal Reserve held rates steady Wednesday but softened its
tone toward interest rates heading into the July meeting, which investors
expect to produce an interest rate cut. An important event ahead of that
meeting will be trade negotiations between the U.S. and China as well as the
meeting between Presidents Trump and Xi. A favorable outcome from that summit
could influence thinking toward Fed policy. Grains are mixed with wheat and
soybeans weaker but corn bouncing from overnight lows to trade into positive
territory. Option expiration for the July contract occurs Friday with a big
round of USDA reports the following Friday. We are also into the season where
changes between weather model runs can and will influence price direction as
heat and moisture become critical to assessing yield potential.
OUTSIDE MARKETS: Previous closes Wednesday showed the Dow Jones Industrial
Average up 38.46 at 26,504.00 and the S&P 500 up 8.71 at 2,917.75 while the
10-Year Treasury yield ended at 2.029%. Early Thursday, the June DJIA futures
are up 225 points. Asian markets are higher with Japan's Nikkei 225 up 128.99
(0.6%) and China's Shanghai Composite up 69.32 points (2.38%). European markets
are higher with London's FTSE 100 up 27.21 points (0.37%), Germany's DAX up
114.41 points (0.94%) and France's CAC 40 up 38.39 points (0.69%). The
September Euro is up 0.005 at 1.140 and the September U.S. dollar index is down
0.377 at 96.205. The September 30-Year T-Bond is up 10/32nds, while August gold
is up $36.00 at $1,384.80 and July crude oil is up $1.52 at $55.28. Soybeans on
China's Dalian Exchange were up 0.32% while soybean meal was down -0.64%.
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