DTN Early Word Grains 12/16 06:11

DTN Early Word Grains 12/16 06:11 Grains Jump on Phase-One, Argentine Export Taxes March corn is up 5 1/2 cents, January soybeans are up 8 1/2 cents, March KC wheat is up 6 3/4 cents and March Minneapolis wheat is up 11 1/2 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: March corn is up 5 1/2 cents, January soybeans are up 8 1/2 cents, March KC wheat is up 6 3/4 cents and March Minneapolis wheat is up 11 1/2 cents. CME Globex Recap: Global equities are mostly higher to begin the trading week as investors are still trying to make sense of the "phase-one" deal with China agreed to late last week. An official signing isn't expected until the first week of January but markets would like to hear statements from China agreeing to some of the dollar amounts and concessions the White House has put forth. Also breaking news over the weekend was the Argentine government's decision to raise export taxes on corn, soybeans and wheat to previous levels, a move which is expected to cut shipments and possibly induce hoarding by Argentine farmers. Grains are sharply higher overnight, being led by gains in Minneapolis wheat after the CFTC showed on Friday the managed fund group was carrying a new record short position. Row crop strength seems tied more to the export taxes than the phase-one deal with China, at least until more confidence is had on how increased U.S. ag exports to China will take place. The overall fund short position in the grain room should be supportive as funds should be hesitant about adding to shorts given the positive headlines of late. OUTSIDE MARKETS: Previous closes on Friday showed the Dow Jones Industrial Average up 3.33 at 28,135.38 and the S&P 500 up 0.23 at 3,168.57 while the 10-Year Treasury yield ended at 1.819%. Early Monday, the December DJIA futures are up 39 points. Asian markets are mixed with Japan's Nikkei 225 down 70.75 (-0.29%) and China's Shanghai Composite up 16.72 points (0.56%). European markets are higher with London's FTSE 100 up 137 points (1.86%), Germany's DAX up 65.89 points (0.5%) and France's CAC 40 up 46.69 points (0.79%). The December Euro is up 0.002 at 1.110 and the March U.S. dollar index is down 0.135 at 96.610. The March 30-Year T-Bond is down 12/32nds, while February gold is up $0.60 at $1,481.80 and January crude oil is down $0.03 at $60.04. Soybeans on China's Dalian Exchange were up 0.32% while soybean meal was up 0.22%.