Morning CME Globex Update:
Markets in general didn't see much change over the last couple hours of overnight trade. DJIA futures were still lower, the U.S. dollar index higher, while gold and crude oil stayed under pressure. Soybeans did see a slight increase in pressure, while corn inched up to almost 2 cents higher. The wheat complex remained firm as well.
|U.S. Dollar Index:||Higher|
Corn contracts slowly built bullish momentum over the early morning hours Wednesday, with support tied to follow-through buying from Tuesday's late rally. Also, as discussed in DTN's Early Word Grains commentary, national average basis firmed Tuesday evening despite the rally in futures (for more information on national average corn basis, see this week's updated studies on DTN).
Soybeans saw a slight increase in pressure Wednesday morning, with the July-to-August futures spread hinting at renewed commercial selling. However, as is often the case, early spread activity could easily have been influenced by low trade volume. Keep an eye on both this old-crop spread and the new-crop November-to-January as Wednesday's session progresses, particularly if bearish momentum grows stronger in the futures market.
The wheat complex held firm through the close of overnight trade, though Minneapolis spring wheat looked to be the most bullish. As with trade in futures spreads, some of the gains seen by HRS versus both SRW and HRW could be due to lower trade volume in Minneapolis. It will be interesting to see if wheat can maintain buying interest over the course of Wednesday's session given the increased bullish momentum of the U.S. dollar index, now up about 0.33.
Darin Newsom can be reached at email@example.com
FollowDarin on Twitter @DarinNewsom
© Copyright 2018 DTN/The Progressive Farmer. All rights reserved.