DTN Before The Bell Grain Comments
Another Bloody Mary? Yes please.
Morning CME Globex Update:
Grains and softs turned green early Wednesday, taking some of the red out of the Bloody Mary mix discussed in Early Word Grains. Oilseeds were still mostly lower, as were energies. Gold fell to a new low despite increasing tension over North Korea. Could it be the "Bitcoin Effect"? DJIA futures continued to rally, pointing toward a strong opening by the Big Board.
Other Markets:
| DJIA futures | Higher |
| U.S. Dollar Index: | Higher |
| Gold: | Lower |
| Crude Oil: | Lower |
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Corn:
Corn went from a little lower to a little higher early Wednesday, following a new contract low by the soon-to-be-in-delivery December. Fundamentally the market remains bearish, with little fresh news expected over the course of Wednesday's session. However, being the middle of the week, and with the end of the month fast approaching, noncommercial short-covering could be seen possibly providing support. USDA announced a sale of 101,600 mt of corn to unknown for 2017-2018.
Soybeans:
Soybean contracts were able to trim overnight losses over the course of Wednesday morning, most likely due to spillover support from corn and wheat. As discussed in Early Word Grains commentary, key to the January contract will be how it acts in regards to Tuesday's low of $9.87 1/2. Given daily momentum now looks to be bearish, a break down seems the most likely direction. Still, if corn and wheat want to rally soybeans may find it difficult to push lower. USDA announced a sale of 263,000 metric tons of soybeans to China for 2017-2018.
Wheat:
The wheat complex finished the overnight session higher, despite increased strength by the U.S. dollar index. If the dollar wants to continue to climb during the day, wheat could have a tough time generating bullish enthusiasm. However, it's also likely recent sellers may look to cover ahead of the end of the month.
DarinNewsom can be reached at darin.newsom@dtn.com
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