News

DTN Early Word Grains 07/06 06:10

DTN Early Word Grains         07/06 06:10
   Wheat Leads Dead-Cat Bounce Overnight

   PRE-6 a.m. GLOBEX PRICES: December corn is down 3 cents per bushel, November
soybeans are up 7 1/4 cents, and September KC wheat is up 12 1/2 cents.

Tregg Cronin
DTN Contributing Analyst

   PRE-6 a.m. GLOBEX PRICES: December corn is down 3 cents per bushel, November
soybeans are up 7 1/4 cents, and September KC wheat is up 12 1/2 cents.

   CME GLOBEX RECAP: Equity markets were mixed overnight with Asia closing
lower while European shares are higher following a difficult start to the week.
U.S. futures are flat ahead of the release of the Federal Reserve meeting
minutes from last month. Grabbing attention Tuesday was the 2- and 10-Year
treasury yield curves inverting for the second time this year. That phenomenon
is often looked to as a recession indicator. Energy prices are slightly higher
overnight following Tuesday's rout with spot crude prices hanging just below
$100.00 per barrel. The U.S. Dollar Index is making new highs for the move
overnight, which should continue to weigh on commodity prices. Metals are
weaker overnight. Grains are mixed overnight with wheat contracts and the soy
complex higher while corn trades lower. Macro-influence is a bearish input with
weather forecasts benign. Funds will remain more apt to sell our space than buy
it until further notice.

   OUTSIDE MARKETS: Previous closes Tuesday showed the Dow Jones Industrial
Average down 129.44 at 30,967.82 and the S&P 500 up 6.06 at 3,825.33 while the
10-Year Treasury yield ended at 2.809%. Early Wednesday, the September DJIA
futures are up 13 points. Asian markets are lower with Japan's Nikkei 225 down
315.82 (-1.2%) and China's Shanghai Composite down 48.68 points (-1.43%).
European markets are higher with London's FTSE 100 up 105.43 points (1.5%),
Germany's DAX up 186.09 points (1.5%) and France's CAC 40 up 87.45 points
(1.51%). The September euro is down 0.005 at 1.030 and the September U.S.
Dollar Index is up 0.300 at 106.620. The September 30-Year T-Bond is down
7/32nds, while August gold is down $4.50 at $1,759.40 and August crude oil is
up $0.25 at $99.75. Corn on China's Dalian Exchange was down -1.15% while
soybeans were down -3.24% and soybean meal was down -1.85%.