DTN Early Word Grains 01/22 06:01
Grains Rally as Chicago Wheat Heads for Five-Year Highs
March corn is up 3 cents per bushel, March soybeans are up 4 1/4 cents, and
March KC wheat is up 2 1/2 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: March corn is up 3 cents per bushel, March soybeans are
up 4 1/4 cents, and March KC wheat is up 2 1/2 cents.
CME Globex Recap: Equity markets around the globe have stabilized following
the panic surrounding the coronavirus outbreak in China and the first confirmed
case in the United States. The Financial Times reported the virus has killed at
least nine people and infected 440 in China and has since spread to other Asian
countries. After seeing how devastating African Swine Fever was to hog
populations and grain demand last year, the thought of a disease tearing
through China that affects humans is sobering. Grains do not appear to be too
shook up about the news, shaking off early mixed trade in the overnight session
to add gains Wednesday morning. Floor leadership continues to be held by
Chicago wheat, which is poised to take out the July 2018 highs to post the
highest trade since July 2015. In 2015, there were widespread fears about
drought in the Black Sea region affecting two of the world's largest wheat
exporters. With no fresh supplies hitting the market in the Northern Hemisphere
for another four to five months, it is difficult to see wheat markets
materially setting back.
OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial
Average down 152.06 at 29,196.04 and the S&P 500 down 8.83 at 3,329.62 while
the 10-Year Treasury yield ended at 1.769%. Early Wednesday, the March DJIA
futures are up 89 points. Asian markets are higher with Japan's Nikkei 225 up
166.79 (0.7%) and China's Shanghai Composite up 8.61 points (0.28%). European
markets are mixed with London's FTSE 100 down 2.32 points (-0.03%), Germany's
DAX up 2.19 points (0.02%) and France's CAC 40 down 2.6 points (-0.04%). The
March Euro is down 0.001 at 1.110 and the March U.S. dollar index is up 0.061
at 97.355. The March 30-Year T-Bond is up 1/32nds, while February gold is down
$0.20 at $1,557.70 and March crude oil is down $0.39 at $57.99. Soybeans on
China's Dalian Exchange were down 0.37% while soybean meal was down 0.42%.
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