DTN Early Word Grains 05/30 06:00

DTN Early Word Grains 05/30 06:00 Grains Posting Modest Gains in Overnight Reversal July corn is up 2 1/2 cents per bushel, July soybeans are up 1/4 cent, and July K.C. wheat is up 1 cent. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: July corn is up 2 1/2 cents per bushel, July soybeans are up 1/4 cent, and July K.C. wheat is up 1 cent. CME Globex Recap: Equity markets are rather soft overnight with weak unemployment data overnight from Germany. However, for the first time in a long time, the focus is on Ag commodities with the level of volatility surging in the last couple of weeks. Grains are sharply higher again overnight with 12-month highs being set in corn futures while soybeans and wheat rise to multi-month levels. Some truly dire balance sheets are being floated with ideas demand rationing could approach 1 billion bushels (bb) helping to stoke the flames. We believe farmers will continue to plant well into June at these price levels but the market will need ideal weather the rest of the summer to achieve an adequate yield. Producer selling has slowed to a crawl as often happens in times of panic. As of the last Commitments of Traders Data, there still existed plenty of net short positions across the grain room, leaving plenty of fuel for the fire. OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial Average down 221.36 at 25,126.41 and the S&P 500 down 19.37 at 2,802.39 while the 10-Year Treasury yield ended at 2.236%. Early Thursday, the June DJIA futures are up 72 points. Asian markets are lower with Japan's Nikkei 225 down 60.84 (-0.29%) and China's Shanghai Composite down 8.89 points (-0.31%). European markets are higher with London's FTSE 100 up 28.8 points (0.4%), Germany's DAX up 68.98 points (0.57%) and France's CAC 40 up 20.15 points (0.39%). The June Euro is up 0.000 at 1.120 and the June U.S. dollar index is down 0.020 at 98.015. The June 30-Year T-Bond is down 12/32nds, while June gold is down $5.50 at $1,275.50 and July crude oil is up $0.15 at $58.96. Soybeans on China's Dalian Exchange were down -0.52% while soybean meal was up 0.1%.