DTN Early Word Grains 08/02 06:01

DTN Early Word Grains 08/02 06:01 Grains Bounce After Thursday's Plunge December corn is up 2 3/4 cents per bushel, November soybeans are up 6 1/4 cents, and September K.C. wheat is up 3 1/2 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: December corn is up 2 3/4 cents per bushel, November soybeans are up 6 1/4 cents, and September K.C. wheat is up 3 1/2 cents. CME Globex Recap: Equity markets were pounded Thursday and that weakness looks to carry over to Friday's session as investors fret over an escalation in the trade war between the U.S. and China. President Trump said he would increase tariffs by another 10% on Chinese goods which China pledged to retaliate against. This helped the Chinese renminbi drop to the lowest level of 2019 with some speculating it could drop through the psychologically important 7.00 mark. The impact on the global economy is the main concern with central banks likely to keep the easy money flowing until this row is sorted out. Commodities took it on the chin Thursday with Ag commodities rebounding some overnight. Most contracts dropped to fresh two-month lows as row crops have now taken out the entire spring rally over the last two weeks. Fortunately for bulls, there will be no demand updates released today, a source of constant bearish fodder with each release. Dryness concerns are getting worse in the Eastern Corn Belt. OUTSIDE MARKETS: Previous closes Thursday showed the Dow Jones Industrial Average down 280.85 at 26,583.42 and the S&P 500 down 26.82 at 2,980.38 while the 10-Year Treasury yield ended at 1.894%. Early Friday, the September DJIA futures are down 57 points. Asian markets are lower with Japan's Nikkei 225 down 453.83 (-2.11%) and China's Shanghai Composite down 40.93 points (-1.41%). European markets are lower with London's FTSE 100 down 135.79 points (-1.68%), Germany's DAX down 283.63 points (-2.31%) and France's CAC 40 down 140.87 points (-2.53%). The September Euro is up 0.001 at 1.110 and the September U.S. dollar index is down 0.089 at 98.055. The September 30-Year T-Bond is up 30/32nds, while December gold is up $16.40 at $1,448.80 and September crude oil is up $1.25 at $55.20. Soybeans on China's Dalian Exchange were -0.24% while soybean meal was up 0.83%.