DTN Before The Bell Grain Comments
Poke 'Em With a Stick
Morning CME Globex Update:
The grain and oilseed complex was quiet, extremely quiet, over the course of early Wednesday morning. Outside markets didn't do much either, though most commodities were higher. Both DJIA futures and the U.S. dollar index continued to show small losses.
Other Markets:
| DJIA futures | Lower |
| U.S. Dollar Index: | Lower |
| Gold: | Higher |
| Crude Oil: | Higher |
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Corn:
Almost imperceptibly, Dec corn expanded its overnight trading range to 2 1/4 cents early Wednesday morning. Trade volume (futures only) was still light at only 8,000 contracts, raising the question as to whether the market will see much interest at all over the course of Wednesday's session. Dec corn remains within striking distance of its contract low of $3.44 1/4, finishing overnight trade at $3.49.
Soybeans:
November soybeans finished the overnight session higher, but sitting near where it was priced 3 hours prior. Traders will keep an eye on the November-to-January futures spread that has seen its carry continue to strengthen this week, moving to roughly 10 1/2 cents. This stronger carry continues to reflect an increasingly bearish commercial view of supply and demand, despite the recent string of daily export sales announcements. Speaking of which, USDA announced sales of 132,000 mt of 2017-2018 supplies to China and 1,080,000 mt of supplies to unknown with 960,000 mt for 2017-2018 delivery and 120,000 mt for 2018-2019 delivery.
Wheat:
Winter wheat contracts held early gains through the end of the overnight session, though did little to show bullish momentum was building. The December Chicago contract continues to sit below a recent series of daily highs near $4.50, unable to generate enough buying interest to break through. Fundamentally the market remains bearish, as indicated by the strong carry in the forward curves of both Chicago (SRW) and Kansas City (HRW).
Darin can be reached at darin.newsom@dtn.com
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