DTN Early Word Grains 12/12 06:04
Grains Rally on Trade War Optimism
March corn was up 1 3/4 cents, January soybeans were up 7 1/4 cents, and
March KC wheat was up 4 1/2 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: March corn was up 1 3/4 cents, January soybeans were up
7 1/4 cents, and March KC wheat was up 4 1/2 cents.
CME Globex Recap: Global equity markets are a good deal firmer Wednesday
morning on rising optimism toward a trade truce. Reports China will cut tariffs
on cars as well as news Huawei chief financial officer Meng Wanzhou had made
bail seemed to ease tensions. Grains are rallying on this optimism, led by
soybeans which are keen to see the rumored 5-8 million metric tons (mmt) of
state reserve purchases.
OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial
Average down 53.02 at 24,370.24, the S&P 500 down 0.94 at 2,636.78 while the
10-yr Treasury yield ended at 2.886%. Early Wednesday, DJIA futures are up
164.00. Asian markets were higher with Japan's Nikkei 225 up 454.73 points
(2.15%) and China's Shanghai Composite was up 8.06 points (0.0.31%). European
markets are higher with London's FTSE 100 up 180.27 points (0.97%), Germany's
DAX up 108.73 points (1.01%), and France's CAC 40 up 81.16 points (1.69%). The
euro was up 0.00055 at 1.13375 and the U.S. dollar index was down 0.0600 at
97.3950. December 30-year T-Bonds were down 9/32nds while February gold was up
$1.50 at $1248.70 and January crude oil was up $0.93 at $52.58. Soybeans on
China's Dalian Exchange closed down 0.65% and soymeal closed down 0.07%.
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