DTN Early Word Grains 08/06 05:58

DTN Early Word Grains 08/06 05:58 Grains Mixed in Consolidative Trade December corn is down 1 3/4 cents per bushel, November soybeans are up 1 3/4 cents, and September K.C. wheat is down 3 1/2 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: December corn is down 1 3/4 cents per bushel, November soybeans are up 1 3/4 cents, and September K.C. wheat is down 3 1/2 cents. CME Globex Recap: Equity markets have stabilized and even recovered some of Monday's trade war-induced losses, although the catalyst for the selloff would seem to suggest the trade war isn't going anywhere. The fact China let the renminbi fall through the 7.00:1 level against the U.S. Dollar for the first time in over a decade speaks to their willingness to take advantage of any and all measures to protect its economy and retain competitive advantage against the U.S. In addition, U.S. treasury rates falling to the lowest level in nearly three years is a sign of investors rushing to safe haven assets and not indicative of the kind of risk appetite associated with a thriving economy. Grains are mixed with corn and wheat lower and soybeans higher as consolidation inside Monday's reversal takes place. More of the same would be expected ahead of next Monday's WASDE report which should produce heightened volatility and hopefully answer some of the burning supply questions of the summer. The current supply issues with the U.S. crop feel like they are in the wrong place at the wrong time. What we mean by that is the trade war, African Swine Fever, record South American crops, multi-year highs in the U.S. dollar and an eroding ethanol sector are all combining to keep a lid on what otherwise should be one of the most explosive markets in recent history. OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial Average down 767.27 at 25,717.74 and the S&P 500 down 87.31 at 2,932.05 while the 10-Year Treasury yield ended at 1.735%. Early Tuesday, the September DJIA futures are up 226 points. Asian markets are lower with Japan's Nikkei 225 down 134.98 (-0.65%) and China's Shanghai Composite down 43.94 points (-1.56%). European markets are higher with London's FTSE 100 up 9.42 points (0.13%), Germany's DAX up 70.89 points (0.61%) and France's CAC 40 up 47.55 points (0.9%). The September Euro is down 0.001 at 1.120 and the September U.S. dollar index is up 0.002 at 97.310. The September 30-Year T-Bond is down 2/32nds, while December gold is down $0.90 at $1,475.60 and September crude oil is up $0.23 at $54.92. Soybeans on China's Dalian Exchange were down 0.09% while soybean meal was up 1.02%.