DTN Early Word Grains 07/31 05:58

DTN Early Word Grains 07/31 05:58 Grains Softer as Downtrends Remain in Place December corn is down 1/4 cent per bushel, November soybeans are down 2 1/4 cents, and September K.C. wheat is down 1 3/4 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: December corn is down 1/4 cent per bushel, November soybeans are down 2 1/4 cents, and September K.C. wheat is down 1 3/4 cents. CME Globex Recap: Global equity markets are mostly higher as traders wait anxiously for the Federal Reserve to cut benchmark interest rates at the conclusion of Wednesday's FOMC meeting. Market participants will also be watching Fed comments and dot plots for expectations on additional easing and upcoming Federal Reserve meetings. The Federal Reserve has the misfortune of trying to react to not only actual economic data on the U.S. economy but also to potential changes in the trade war with China. The direction of the U.S. Dollar Index post-meeting will be interesting considering the impressive rally it's been on since the end of June. Grain markets are softer across the board as the go-nowhere trade continues. Forecasts are mostly favorable for continued reproduction, even though there are a few dry spots in the Central Corn Belt to monitor. Until bulls are armed with acreage or yield data, they will have a difficult time standing up to bears who are armed with benign forecasts and poor demand data. Easing cash basis across the Midwest is also taking some starch out of the bulls resolve. OUTSIDE MARKETS: Previous closes Tuesday showed the Dow Jones Industrial Average down 23.33 at 27,198.02 and the S&P 500 down 7.79 at 3,020.97 while the 10-Year Treasury yield ended at 2.061%. Early Wednesday, the September DJIA futures are up 77 points. Asian markets are lower with Japan's Nikkei 225 down 187.78 (-0.86%) and China's Shanghai Composite down 19.83 points (-0.67%). European markets are mixed with London's FTSE 100 down 28.07 points (-0.37%), Germany's DAX up 32.92 points (0.27%) and France's CAC 40 up 7.2 points (0.13%). The September Euro is down 0.001 at 1.120 and the September U.S. dollar index is up 0.026 at 97.835. The September 30-Year T-Bond is up 7/32nds, while August gold is up $1.80 at $1,431.50 and September crude oil is up $0.39 at $58.44. Soybeans on China's Dalian Exchange were up 0.15% while soybean meal was up 0.25%.