DTN Early Word Grains 12/10 05:58
Grains Weaker as Trade Agreements Eyed
March corn is up 1/4 cent, January soybeans are down 1/2 cent, and March KC
wheat is down 1 1/2 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: March corn is up 1/4 cent, January soybeans are down
1/2 cent, and March KC wheat is down 1 1/2 cents.
CME Globex Recap: Global equity markets are weaker overnight, particularly in
Europe, with analysts pointing toward softer Chinese export data and the
looming tariff deadline. Chinese exports fell 1.1% in November, the fourth
consecutive monthly drop, with exports to the U.S. down 23%, the worst result
since February and the twelfth consecutive monthly drop. More salient to us
seems to be comments suggesting the tariff deadline of December 15 will get
moved further down the road, allowing more negotiation time. With the USMCA
expected to be signed later Tuesday in Mexico City, deal making could be in the
air. Nothing trade related is giving grain markets much of a boost as bears
continue to point to the fact the USMCA and any potential deal with China would
more than likely just solidify demand we already had as opposed to creating
additional demand. Harvest continues to drag out in the Northern Plains and
will do so well into 2020. With the excessively wet soil conditions, it looks
more than likely a difficult spring lies ahead for many.
OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial
Average down 105.46 at 27,909.60 and the S&P 500 down 9.95 at 3,145.91 while
the 10-Year Treasury yield ended at 1.829%. Early Tuesday, the December DJIA
futures are down 114 points. Asian markets are mixed with Japan's Nikkei 225
down 20.51 (-0.09%) and China's Shanghai Composite up 2.84 points (0.1%).
European markets are lower with London's FTSE 100 down 83.6 points (-1.16%),
Germany's DAX down 181.48 points (-1.38%) and France's CAC 40 down 35.68 points
(-0.84%). The December Euro is up 0.002 at 1.110 and the December U.S. dollar
index is down 0.129 at 97.480. The March 30-Year T-Bond is up 16/32nds, while
February gold is up $6.40 at $1,471.30 and January crude oil is down $0.31 at
$58.71. Soybeans on China's Dalian Exchange were up 0.2% while soybean meal was
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