DTN Early Word Grains 01/28 05:59
Grains See Follow-Through Weakness
March corn is down 1 1/4 cents per bushel, March soybeans are down 7 3/4
cents, and March KC wheat is down 4 1/4 cents.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: March corn is down 1 1/4 cents per bushel, March
soybeans are down 7 3/4 cents, and March KC wheat is down 4 1/4 cents.
CME Globex Recap: Financial markets are stabilizing overnight as traders seem
to be coming to grips at least somewhat with the coronavirus. The death toll in
China has moved over 100 and Hong Kong has closed rail links with mainland
China to try and help contain the virus. The virus has increased from 3,000
cases Monday to close to 4,500 in less than a day as scientists predict the
virus will get worse before it gets better. Grain markets are stabilizing
somewhat from Monday's weaker trade as traders realize the number of animals
around the globe didn't get cut in half from last week. Still, the uncertainty
of a virus like this in the world's second largest economy is unnerving and may
take several days before the downdraft is completely shook loose. Soybean oil
is leading losses again overnight, following losses in Malaysian Palm Oil which
was down 10% in the front-month contract as the coronavirus hits much closer to
OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial
Average down 453.93 at 28,535.80 and the S&P 500 down 51.84 at 3,295.47 while
the 10-Year Treasury yield ended at 1.605%. Early Tuesday, the March DJIA
futures are up 71 points. Asian markets are lower with Japan's Nikkei 225 down
127.8 (-0.55%) and China's Shanghai Composite down 84.23 points (-2.75%).
European markets are mixed with London's FTSE 100 up 13.89 points (0.19%),
Germany's DAX down 14.79 points (-0.11%) and France's CAC 40 up 5.29 points
(0.09%). The March Euro is up 0.001 at 1.110 and the March U.S. dollar index is
up 0.023 at 97.790. The March 30-Year T-Bond is up 11/32nds, while February
gold is up $1.20 at $1,578.60 and March crude oil is down $0.32 at $52.82.
Soybeans on China's Dalian Exchange were down 0.7% while soybean meal was down
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