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DTN Early Word Grains 08/27 05:50
Counter-Seasonal Grain Rally Faces End-of-Month Profit-Taking
December corn is down 4 cents per bushel, November soybeans are down 7 1/2
cents, December KC wheat is down 1/2 cent, December Chicago wheat is up 3/4
cent, and MIAX December Minneapolis wheat is down 0.0025 cents.
Mike McGinnis
DTN Contributing Analyst
EARLY MORNING GLOBEX NET CHANGES: December corn is down 4 cents per bushel,
November soybeans are down 7 1/2 cents, December KC wheat is down 1/2 cent,
December Chicago wheat is up 3/4 cent, and MIAX December Minneapolis wheat is
down 0.0025 cents.
CME GLOBEX RECAP: On Wednesday, December corn rose 13 cents, November
soybeans rose 28 1/4 cents, and September KC wheat rose 37 1/2 cents. Corn and
spring wheat basis was stronger Wednesday, while soft red winter wheat basis,
soybean, and hard red winter wheat basis were steady. Wheat certainly led the
way, reaching three-year highs mainly due to havoc caused by grain shipping
disruptions in the Black Sea. Ukraine and Russia couldn't seem any further away
from a truce, with Russia's Putin threatening to escalate the war. Because
Ukraine's export struggles don't stop with wheat, corn prices used the same
rally to surge to three-year highs on Wednesday. Soybeans benefitted from
another day of fresh export sales to China. Traders expect Thursday's export
sales data to show the demand strength coming from China's appetite for U.S.
soybeans. A sharp rally like this one, so close to harvest, may spark farmer
selling. The rally has also arrived conveniently ahead of the usual
end-of-month profit-taking. On paper, the bears appear to have their work cut
out for them. On Thursday, USDA will lead things off with the weekly Export
Sales report at 7:30 a.m. CDT. Otherwise, traders will continue to watch for
news from the Black Sea and the Middle East conflicts.
OUTSIDE MARKETS: The previous close on Wednesday showed the Dow Jones
Industrial Average down 113.52 points to 53,463.88 and the S&P 500 down 1.58
points to 7,675.70. The 10-Year Treasury yield ended at 4.664%. Early Thursday,
the September Dow Jones Futures are down 37 points. European markets are mixed,
with the spot futures of London's FTSE 100 trading down 0.78%, the spot futures
of Germany's DAX trading up 0.08%, and the spot futures of France's CAC 40
Index trading down 1.04%. Asian markets are mixed, with Japan's Nikkei 225
Index down 0.2% and China's Shanghai Composite Index up 1.13%.
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