DTN Early Word Grains 02/25 06:00
Grains Stabilize Following Coronavirus-Led Selloff
March corn is up 1/4 cent per bushel, March soybeans are up 1 cent, and May
KC wheat is down 3/4 cent.
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: March corn is up 1/4 cent per bushel, March soybeans
are up 1 cent, and May KC wheat is down 3/4 cent.
CME Globex Recap: Global equities are following through with weakness from
Monday, although U.S. futures are stabilizing much better than most countries.
When the dust settled, equities saw their worst single-day performance in over
two years as the VIX S&P 500 volatility index spiked to a 14-month high at
26.35%. Coronavirus spreading in Italy sparked the selloff yesterday but
overnight Japan is issuing warnings that it is on the brink of rapid expansion
of the virus and has urged companies to adopt remote working and encourage
online meetings to help stop the spread. Global growth fears were bad enough
when China was the primary concern but if other developed nations are thrown
into the mix, 2020 global growth could be in real jeopardy. Grains are mixed
overnight as most contracts battle on either side of unchanged. Fortunately,
prices are stabilizing after the selloff Monday, possibly signaling the worst
is over. February insurance pricing will be completed this week with traders
then looking forward to the March slate of USDA reports and extended weather
forecasts for U.S. spring.
OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial
Average down 1,031.61 at 27,960.80 and the S&P 500 down 111.86 at 3,337.75
while the 10-Year Treasury yield ended at 1.377%. Early Tuesday, the March DJIA
futures are up 60 points. Asian markets are lower with Japan's Nikkei 225 down
781.33 (-3.34%) and China's Shanghai Composite down 18.18 points (-0.6%).
European markets are lower with London's FTSE 100 down 55.63 points (-0.78%),
Germany's DAX down 110.05 points (-0.84%) and France's CAC 40 down 51.64 points
(-0.89%). The March Euro is down 0.001 at 1.080 and the March U.S. dollar index
is down 0.019 at 99.265. The March 30-Year T-Bond is up 13/32nds, while April
gold is down $24.80 at $1,651.80 and April crude oil is down $0.16 at $51.27.
Soybeans on China's Dalian Exchange were down 0.33% while soybean meal was down
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