DTN Early Word Grains 08/27 05:58

DTN Early Word Grains 08/27 05:58 Grains Ease as Trade Optimism Fizzles December corn is down 3/4 cents per bushel, November soybeans are down 6 1/2 cents, and December K.C. wheat is down 1/2 cent. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: December corn is down 3/4 cents per bushel, November soybeans are down 6 1/2 cents, and December K.C. wheat is down 1/2 cent. CME Globex Recap: Quietly mixed global equity markets following Monday's rally on trade war optimism between the U.S. and China. Once the dust settled, however, very little appears to have been agreed upon with tariffs on both sides still set to be put in place in coming months. The Chinese renminbi softened to an 11-year low Monday, losing 3.8% during the month of August, on-track to be its worst month since 2005. Grains also lost some of their luster overnight as early frost concerns can only carry prices so high until one actually happens. Otherwise, crop conditions featured an improvement for both corn and soybeans last week, benefitting from recent moisture that rolled through the Eastern Corn Belt. Old crop bushels continue to be pitched out the door in an effort to make room for new crop. That said, basis remains historically high which should offer some good opportunities for sales off the combine for producers lacking storage. OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial Average up 269.93 at 25,898.83 and the S&P 500 up 31.27 at 2,847.11 while the 10-Year Treasury yield ended at 1.545%. Early Tuesday, the September DJIA futures are down 26 points. Asian markets are higher with Japan's Nikkei 225 up 195.04 (0.96%) and China's Shanghai Composite up 38.63 points (1.35%). European markets are mixed with London's FTSE 100 down 32.21 points (-0.45%), Germany's DAX up 20.67 points (0.18%) and France's CAC 40 down 5.37 points (-0.1%). The September Euro is up 0.001 at 1.110 and the September U.S. dollar index is down 0.204 at 97.785. The September 30-Year T-Bond is up 32/32nds, while December gold is up $3.90 at $1,541.10 and October crude oil is up $0.46 at $54.10. Soybeans on China's Dalian Exchange were -0.06% while soybean meal was -1.14%.