DTN Early Word Grains 02/26 05:58
Grains Weak as Coronavirus Fears Weigh on Outsides
March corn is down 1 1/2 cents per bushel, March soybeans are down 1 3/4
cents, and May KC wheat is down 2 3/4 cents..
By Tregg Cronin
DTN Contributing Analyst
6:00 a.m. CME Globex: March corn is down 1 1/2 cents per bushel, March
soybeans are down 1 3/4 cents, and May KC wheat is down 2 3/4 cents.
CME Globex Recap: The global equity rout is continuing as coronavirus fears
persist with concerns growing the outbreak is going to intensify in developed
countries. The U.S. Center for Disease Control released a statement Tuesday
saying the outbreak would likely evolve into a pandemic that would cause
"severe" disruptions to daily life in the U.S. The number of people affected by
the disease globally has now pushed past 81,000 with new cases announced in
Spain. Odds seem to be growing the disease could prompt a global recession.
Grain markets are mostly weaker overnight as momentum remains absent amid the
negative money flow in all asset classes. With flows driving so much of our
price action as of late, it is difficult to focus on fundamentals. As the
calendar flips to March, the focus will shift more fully to new crop and
weather forecasts for planting in the United States. Until the focus shifts
away from coronavirus, it will be difficult for managed funds to take a bullish
stance toward our space.
OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial
Average down 879.44 at 27,081.36 and the S&P 500 down 97.68 at 3,225.89 while
the 10-Year Treasury yield ended at 1.33%. Early Wednesday, the March DJIA
futures are down 74 points. Asian markets are lower with Japan's Nikkei 225
down 179.22 (-0.79%) and China's Shanghai Composite down 25.12 points (-0.83%).
European markets are lower with London's FTSE 100 down 53.5 points (-0.76%),
Germany's DAX down 201.53 points (-1.58%) and France's CAC 40 down 57.15 points
(-1.01%). The March Euro is down 0.000 at 1.090 and the March U.S. dollar index
is up 0.119 at 99.020. The March 30-Year T-Bond is down 16/32nds, while April
gold is down $0.60 at $1,649.40 and April crude oil is down $0.56 at $49.34.
Soybeans on China's Dalian Exchange were up 0.7% while soybean meal was up
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