DTN Early Word Grains 05/22 06:01
Grains Weak Ahead of Memorial Day Break
July corn is down 1 1/2 cents per bushel, July soybeans are down 4 1/2
cents, and July KC wheat is down 4 1/2 cents.
DTN Contributing Analyst
Pre-6 a.m. Globex Prices: July corn is down 1 1/2 cents per bushel, July
soybeans are down 4 1/2 cents, and July KC wheat is down 4 1/2 cents.
CME Globex Recap: Weaker equity markets around the globe overnight with a
weaker open expected in the U.S. For the week, however, equity markets are
still higher with S&P futures sitting on an 80-point gain. Late-week pressure
is being tied to China abandoning a gross domestic product target for the first
time in history as it grapples with the worst downturn since the 1970's.
Analysts were already skeptical of the economic data China released but if they
choose to release even less going forward, analysts could really be kept in the
dark. Official estimates suggest economic activity in China contracted by 6.8%
in the first quarter which might suggest the contraction will be even worse in
quarter two if they are not willing to release guidance. The concern about
China bled into commodity markets and is keeping trade week on the final
session Friday before the Memorial Day weekend. Post-Memorial Day trade will
increasingly focus on weather as planting wraps up and attention shifts to what
is required to achieve top end yields. Energy markets are sharply weaker while
precious metals are firmer.
OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial
Average down 101.78 at 24,474.12 and the S&P 500 down 23.10 at 2,971.61 while
the 10-Year Treasury yield ended at 0.677%. Early Friday, the June DJIA futures
are down 95 points. Asian markets are lower with Japan's Nikkei 225 down 164.15
(-0.8%) and China's Shanghai Composite down 54.16 points (-1.89%). European
markets are lower with London's FTSE 100 down 70.27 points (-1.17%), Germany's
DAX down 43.17 points (-0.39%) and France's CAC 40 down 7.36 points (-0.17%).
The June Euro is down 0.006 at 1.090 and the June U.S. dollar index is up 0.437
at 99.840. The June 30-Year T-Bond is up 32/32nds, while June gold is up
$14.50 at $1,736.40 and July crude oil is down $2.04 at $31.88. Soybeans on
China's Dalian Exchange were up 2.56% while soybean meal was up -0.04%.
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