DTN Before The Bell Grain Comments
Something Seems to be Brewing
Morning CME Globex Update:
There seemed to be something brewing in financial markets early Tuesday as DJIA futures moved to triple-digit losses and the U.S. dollar index roared to a strong 0.56 gain. While energies stayed firm, metals were hit hard with gold down about $19. Soybeans slipped to a fractional loss while wheat moved back to unchanged. Corn continued to show a small gain.
Other Markets:
| DJIA futures | Lower |
| U.S. Dollar Index: | Higher |
| Gold: | Lower |
| Crude Oil: | Higher |
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Corn:
Corn contracts didn't do much over the course of the morning with old-crop July holding a 2-cent gain at the end of overnight trade while new-crop December was 1 3/4 cents higher. Key will be activity in futures spreads Tuesday, both old-crop July-to-August and new-crop December-to-March.
Soybeans:
Soybeans slipped below unchanged by the end of overnight trade due in part to the strength of the U.S. dollar Tuesday morning. It will be interesting to see if commercial selling returns to the soybean market as the day progresses, something hinted at by spread activity in the soybean meal market. If so, it could make a statement that Monday's rally on new Argentine crop problems may have been overdone.
Wheat:
Chicago winter wheat (SRW) was able to hold small gains through the close of overnight trade while Kansas City (HRW) fell back to unchanged. Much of the morning pressure was likely due to the resurgent U.S. dollar index, a factor that could put the wheat complex in general on the defensive as we make our way through Tuesday's session.
Darin Newsom can be reached at darin.newsom@dtn.com
FollowDarin on Twitter @DarinNewsom
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