DTN Before The Bell Grain Comments

By Darin Newsom
DTN Senior Analyst

Morning CME Globex Update:

Global markets were shaken overnight by threats of another round of tariffs by China, in response to the U.S.' latest threats of increased tariffs on Chinese goods. As the morning wore on, selling interest subsided.

Other Markets:

DJIA futures	Lower
U.S. Dollar Index:	Lower
Gold:	Higher
Crude Oil:	Lower

Corn:

Corn contracts were able to trim losses back to single-digits by the end of the overnight session. Wednesday's direction will largely be determined by the direction of soybeans over the course of the day. It's possible the bulk of the selling associated with overnight news has been done, leading to a possibly rally as the day session progresses.

Soybeans:

Soybeans recovered some of its overnight loss as the realization that China's tariffs were still threatened, not enacted as of yet. Much depends on the ongoing trade negotiations between the two countries. As with corn, it's possible the initial sell-off burned through standing sell orders leaving a vacuum above the market. Keep a close eye on futures spreads as Wednesday's session progresses. USDA announced sales of 130,000 mt of 2017-2018 soybeans to unknown destinations, 195,000 mt of 2018-2019 to unknown, and 129,000 mt of 2018-2019 soybeans to China.

Wheat:

July Kansas City wheat nearly erased its overnight loss early Wednesday morning, supported by continued adverse weather across the U.S. Southern Plains. Another morning of temperatures far below freezing could bring buyers back, regardless of what is going in soybeans and corn over the course of the day session.

Darin Newsom can be reached at darin.newsom@dtn.com

Follow Darin on Twitter @DarinNewsom

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