DTN Early Word Grains 04/02 05:59
Row Crops Higher, Wheat Weaker as Energy Rallies
May corn is up 2 3/4 cents per bushel, May soybeans are up 1/2 cent, and May
KC wheat is down 7 1/4 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: May corn is up 2 3/4 cents per bushel, May soybeans are
up 1/2 cent, and May KC wheat is down 7 1/4 cents.
CME Globex Recap: Energy markets are rallying overnight which is in-turn
supporting equities as President Trump said after talking with the leaders of
both Russia and Saudi Arabia that the two countries would end their price war
within a "few days." In addition, the President said he plans to meet with U.S.
oil executives in coming days to discuss ways to help the industry "ravaged" by
the coronavirus and Saudi-Russo price war. While an end to the price war
between Saudi Arabia and Russia could certainly help stabilize energy prices,
there is still a massive demand problem as long as quarantine measures are
enacted around the globe. Grain prices are mixed with steady to firmer row
crops while wheat markets post losses. The losses in wheat the past two days
have been disheartening considering their run during the month of March. All
three major ag commodities still have the entire growing season in front of the
market, raising the question of how much risk premium exists at current prices.
OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial
Average down 973.65 at 20,943.51 and the S&P 500 down 114.09 at 2,584.59 while
the 10-Year Treasury yield ended at 0.635%. Early Thursday, the June DJIA
futures are up 403 points. Asian markets are mixed with Japan's Nikkei 225 down
246.69 (-1.37%) and China's Shanghai Composite up 46.12 points (1.69%).
European markets are higher with London's FTSE 100 up 21.19 points (0.39%),
Germany's DAX up 43.15 points (0.45%) and France's CAC 40 up 34.85 points
(0.83%). The June Euro is down 0.000 at 1.100 and the June U.S. dollar index is
down 0.103 at 99.650. The June 30-Year T-Bond is up 40/32nds, while June gold
is up $8.70 at $1,600.10 and May crude oil is up $2.05 at $22.36. Soybeans on
China's Dalian Exchange were up 0.85% while soybean meal was down 1.87%.
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