DTN Before The Bell Grain Comments
Commodities Under Pressure
Morning CME Globex Update:
The commodity complex was under pressure Monday morning, due in part to the strengthening U.S. dollar. The euro was pressured by an independence movement by Catalonia against Spain, and a weekend of demonstrating and violence. The energy complex was being hit hard Monday.
Other Markets:
| Dow Jones: | Higher |
| U.S. Dollar Index: | Higher |
| Gold: | Lower |
| Crude Oil: | Lower |
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Corn:
Once again, corn did little over the course of Monday morning, the December contract still holding near the midpoint of its sideways range between $3.44 1/4 and $3.62 1/2. Trade volume (futures only) for the overnight session was moderate at 17,000 contracts (Dec corn). Last week's small rally (1 3/4 cents for the week) saw total open interest (futures only) in the corn market increase by about 5,300 contracts. USDA announced a sale of 597,464 mt of 2017-2018 corn to Mexico.
Soybeans:
Soybeans finished the overnight session lower, though selling interest seemed subdued over the course of the morning. Trade volume (futures only) finished the session at 12,000 contracts (Nov beans), reflecting a moderate level of trade overnight. As discussed in Early Word Grains, the minor (short-term) trend for November soybeans remains down. With the November-to-January futures spread already at a bearish level of calculated full commercial carry, it will be interesting to see activity of commercial traders to begin the week. USDA announced a sale of 132,000 mt of soybeans to China.
Wheat:
The wheat complex finished the overnight session lower, led by strong commercial selling in Minneapolis spring wheat. There the market continues to react to last Friday's bearish crop production number from USDA, the 416 mb coming in well above what had been expected. As discussed in Early Word Grains, the overnight session saw December Minneapolis wheat establish a new low for this move of $6.08 3/4.
Todd can be reached at todd.hultman@dtn.com
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