DTN Early Word Grains 12/17 05:58

DTN Early Word Grains 12/17 05:58 Grains Ease Following Monday Surge March corn is down 1 1/4 cents, January soybeans are down 1/4 cent, and March KC wheat is down 4 1/4 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: March corn is down 1 1/4 cents, January soybeans are down 1/4 cent, and March KC wheat is down 4 1/4 cents. CME Globex Recap: Equity markets are taking a breather after setting further record highs on Monday with optimism reigning on the Chinese trade deal. Analysts expect Congress to pass bipartisan spending bills this week to fund the government through September 2020 before legislators leave for their Christmas break. According to political outlets, the spending bills will produce a budget deficit of $1.2 trillion in 2020 with the average deficit remaining $1.2 trillion annually through 2029. That would see the national debt rise from $23 trillion currently to $35 trillion before the end of the next decade. Grain markets are weaker across the board, easing from Monday's impressive rally that saw double-digit gains in both wheat and soybeans. The euphoria tied to ideas China will be coming in and buying anything not nailed down seemed to drive the buying, so actual announcements with dollar amounts and tonnages will be required for our markets to extend gains. Sizable short positions held by the managed fund community should also support prices through year-end. OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial Average up 100.51 at 28,235.89 and the S&P 500 up 22.65 at 3,168.80 while the 10-Year Treasury yield ended at 1.892%. Early Tuesday, the December DJIA futures are down 59 points. Asian markets are higher with Japan's Nikkei 225 up 113.77 (0.47%) and China's Shanghai Composite up 38.03 points (1.27%). European markets are lower with London's FTSE 100 down 1.1 points (-0.01%), Germany's DAX down 76.42 points (-0.57%) and France's CAC 40 down 18.81 points (-0.31%). The December Euro is up 0.003 at 1.120 and the March U.S. dollar index is up 0.115 at 96.695. The March 30-Year T-Bond is up 19/32nds, while February gold is up $2.60 at $1,483.10 and January crude oil is down $0.03 at $60.18. Soybeans on China's Dalian Exchange were up 0.31% while soybean meal was up 0.18%.