DTN Early Word Grains 12/27 06:02

DTN Early Word Grains 12/27 06:02 Grains Rally on Trade Hopes March corn is up 1 1/4 cents per bushel, January soybeans are up 3 cents, and March KC wheat is up 4 3/4 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: March corn is up 1 1/4 cents per bushel, January soybeans are up 3 cents, and March KC wheat is up 4 3/4 cents. CME Globex Recap: All three major U.S. stock indices closed at record highs Thursday and futures are pointing toward additional highs Friday. Analysts pointed toward trade optimism between the U.S. and China for a catalyst with both sides suggesting a deal will be signed in January. The Financial Times reported NASDAQ closed higher for the eleventh straight session, the longest run of higher closes since July 2009. Grains are higher across the board, led by soybean oil and Chicago wheat as ag commodities add to the impressive gains of late. Trade optimism is certainly supportive as are a lack of volume and participation during the holiday week. Markets are much more easily pushed around between Christmas and New Year's but the supportive features are still present. With another blizzard set to hit the Midwest over the coming weekend, subdued grain movement will slow even further, which could support local cash basis. However, the last thing our export programs need are difficult logistics just as performance has rebounded and USDA forecasts look attainable. OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial Average up 105.94 at 28,621.39 and the S&P 500 up 16.53 at 3,223.38 while the 10-year Treasury yield ended at 1.905%. Early Friday, the March DJIA futures are up 94 points. Asian markets are lower with Japan's Nikkei 225 down 87.2 (0.36%) and China's Shanghai Composite down 2.32 points (0.08%). European markets are higher with London's FTSE 100 up 26.45 points (0.3%), Germany's DAX up 47.94 points (0.36%) and France's CAC 40 up 24.11 points (0.4%). The March euro is up 0.004 at 1.120 and the March U.S. dollar index is down 0.265 at 96.850. The March 30-year T-Bond is up 8/32nds, while February gold is up $1.70 at $1,516.10 and February crude oil is up $0.23 at $61.91. Soybeans on China's Dalian Exchange were up 0.03% while soybean meal was up 0.38%.