DTN Early Word Grains 01/08 06:02

DTN Early Word Grains 01/08 06:02 Grains Pare Losses as Early Volatility Eases March corn is down 1 cent per bushel, March soybeans are down 1/2 cent, and March KC wheat is up 1/2 cent. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: March corn is down 1 cent per bushel, March soybeans are down 1/2 cent, and March KC wheat is up 1/2 cent. CME Globex Recap: After an initial selloff in equities and a spike in energies, financial markets have steadied overnight following reports the Iranian Revolutionary Guard launched over a dozen ballistic missiles at U.S. forces in Iraq. Damage is thought to be minimal, although the action inches us closer to an all-out conflict in the region. A tit-for-tat between a superpower and an established country like Iran is a much different situation than has been seen since the Iraq war. Encouragingly, the U.S.'s emergence as a global oil powerhouse has kept a lid on crude oil excitement. Grain markets have pared losses from overnight lows but enthusiasm for owning grains appears muted until at least Friday's USDA reports. The tensions with Iran have moved the "phase-one" trade deal off the front-page, although ideas are still pointed toward a January 15 signing. Market structure heading into Friday's report will be important with funds now net long winter wheat, still short corn and neutral soybeans. OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial Average down 119.70 at 28,583.68 and the S&P 500 down 9.10 at 3,246.28 while the 10-Year Treasury yield ended at 1.827%. Early Wednesday, the March DJIA futures are up 17 points. Asian markets are lower with Japan's Nikkei 225 down 370.96 (1.57%) and China's Shanghai Composite down 37.91 points (1.22%). European markets are higher with London's FTSE 100 up 0.17 points (0.01%) and Germany's DAX up 5.87 points (0.04%). The March Euro is down 0.002 at 1.120 and the March U.S. dollar index is up 0.113 at 96.815. The March 30-Year T-Bond is up 7/32nds, while February gold is up $5.30 at $1,579.60 and February crude oil is up $0.11 at $62.81. Soybeans on China's Dalian Exchange were down 0.03% while soybean meal was down 0.34%.