DTN Early Word Grains 06/14 06:13
Grains Rally into Weekend as Yield Concerns Persist
July corn is up 5 1/4 cents per bushel, July soybeans are up 3 3/4 cents,
and July KC wheat is up 2 1/2 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: July corn is up 5 1/4 cents per bushel, July soybeans
are up 3 3/4 cents, and July KC wheat is up 2 1/2 cents..
CME Globex Recap: The equity markets were mostly weaker Friday and the
one-day rally in energy prices also appears to have cooled, with tensions
easing slightly over the oil tanker kerfuffle. The oil market is also quick to
recognize a slowdown in crude shipments through the Suez Canal, which will
likely have limited impact on global supply, especially as U.S. stocks rise to
near five-year highs. Grain markets continue to add to recent gains with acre
and yield speculation running rampant. Our markets will continue to rally on
uncertainty and will likely have highs made once confirmation comes on either
figure. Concerns are growing louder that soybeans may be joining corn with
respect to yields and acres, although we feel it is a bit too early to be axing
significant yield potential off the soybean crop. A daylight-sensitive crop
that has so much potential based off August and September weather can be
litigated later in the summer in our opinion.
OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial
Average up 101.94 at 26,106.77 and the S&P 500 up 11.80 at 2,879.84 while the
10-year Treasury yield ended at 2.091%. Early Friday, the June DJIA futures are
down 69 points. Asian markets are mixed with Japan's Nikkei 225 down 176.36
(-0.65%) and China's Shanghai Composite up 84.89 points (0.4%). European
markets are lower with London's FTSE 100 down 48.3 points (-0.66%), Germany's
DAX down 114.63 points (-0.94%) and France's CAC 40 down 31.05 points (-0.58%).
The June euro is down 0.001 at 1.130 and the June U.S. dollar index is up 0.066
at 97.065. The September 30-year T-Bond is up 17/32nds, while August gold is
up $14.60 at $1,358.30 and July crude oil is down $0.19 at $52.09. Soybeans on
China's Dalian Exchange were down -0.46% while soybean meal was up 0.11%.
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