DTN Early Word Grains 01/07 06:01

DTN Early Word Grains 01/07 06:01 Grains Soft Despite Outside Market Recovery March corn is down 3/4 cent per bushel, March soybeans are down 2 1/4 cents, and March KC wheat is down 3 1/4 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: March corn is down 3/4 cent per bushel, March soybeans are down 2 1/4 cents, and March KC wheat is down 3 1/4 cents. CME Globex Recap: After gold rallied to a six-year high Monday, calm seems to be returning to financial markets as oil slows its recent ascent. In another sign focus was shifting away from the Middle East slightly, the Chinese renminbi strengthened to the highest level against the U.S. dollar since August and was looking to notch its best performance in six months. Confidence about the January 15 signing between the U.S. and China is obviously high, and one of the main complaints from the U.S. during the trade war has been the issue of currency manipulation by the Chinese. Grains are weaker overnight, however, unable to follow the relief rally in risk assets seen in most markets. Grains were caught by the outward flow of money Friday and Monday but focus is clearly shifting to the WASDE reports at the end of the week. South American weather is a mixed bag with some concern areas in Brazil but favorable precipitation forecasts for both Argentina and Brazil the next 15-days. OUTSIDE MARKETS: Previous closes on Monday showed the Dow Jones Industrial Average up 68.50 at 28,703.38 and the S&P 500 up 11.43 at 3,234.85 while the 10-Year Treasury yield ended at 1.811%. Early Tuesday, the March DJIA futures are up 12 points. Asian markets are higher with Japan's Nikkei 225 up 370.86 (1.6%) and China's Shanghai Composite up 21.39 points (0.69%). European markets are higher with London's FTSE 100 up 12.74 points (0.17%), Germany's DAX up 146.35 points (1.11%) and France's CAC 40 up 30.38 points (0.51%). The March Euro is down 0.001 at 1.120 and the March U.S. dollar index is up 0.100 at 96.450. The March 30-Year T-Bond is up 1/32nds, while February gold is up $1.20 at $1,570.00 and February crude oil is down $0.35 at $62.92. Soybeans on China's Dalian Exchange were up 0.56% while soybean meal was up 0.5%.