DTN Early Word Grains 08/12 05:57

DTN Early Word Grains 08/12 05:57 Grains Weaker as August WASDE Looms December corn is down 2 1/2 cents per bushel, November soybeans are down 5 1/2 cents, and September K.C. wheat is down 2 1/4 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: December corn is down 2 1/2 cents per bushel, November soybeans are down 5 1/2 cents, and September K.C. wheat is down 2 1/4 cents. CME Globex Recap: Global equity markets are mixed to begin a fresh week of trading with the focus this week likely on any trade war developments, crude oil prices after the spot contract fell to a seven-month low and the end of Q2 earnings season. Trade war rhetoric should ratchet up this week after China allowed the Yuan to devalue over 2.5% the last two weeks after defending the vaunted 7.00:1 level against the U.S. Dollar Index for the last decade. Grain markets are mostly weaker in the hours ahead of the August WASDE report. It feels as though traders are positioned for either a sharply higher or sharply lower post-report reaction with the real surprise being a dud of a report. One thing to keep in mind about today's data is the fact the Farm Service Agency data on prevented planting acres will be the initial release and will not be a complete look at all planted and unplanted acres. In addition, 2019 will be the first year in which the USDA does not incorporate objective yield plots but instead relies on farmer surveys and satellite data to produce their yield estimates. How this correlates to the historical yield method isn't clear but either bears or bulls are sure to take issue depending on the outcome. OUTSIDE MARKETS: Previous closes Friday showed the Dow Jones Industrial Average down 90.75 at 26,287.44 and the S&P 500 down 19.44 at 2,938.09 while the 10-Year Treasury yield ended at 1.734%. Early Monday, the September DJIA futures are down 105 points. Asian markets are higher with Japan's Nikkei 225 up 91.47 (0.44%) and China's Shanghai Composite up 40.24 points (1.45%). European markets are mixed with London's FTSE 100 down 15.16 points (-0.21%), Germany's DAX up 10.27 points (0.09%) and France's CAC 40 down 10.28 points (-0.19%). The September Euro is down 0.003 at 1.120 and the September U.S. dollar index is up 0.118 at 97.440. The September 30-Year T-Bond is up 28/32nds, while December gold is up $5.40 at $1,513.90 and September crude oil is down $0.70 at $53.80. Soybeans on China's Dalian Exchange were up 0.53% while soybean meal was -0.1%.