DTN Early Word Grains 01/16 05:58

DTN Early Word Grains 01/16 05:58 Grains Weak as Traders Balk at "Phase-One" Language March corn is down 5 1/4 cents per bushel, March soybeans are down 4 1/2 cents, and March KC wheat is down 9 3/4 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: March corn is down 5 1/4 cents per bushel, March soybeans are down 4 1/2 cents, and March KC wheat is down 9 3/4 cents. CME Globex Recap: Financial markets are steady to higher overnight as investors around the globe react to the long-awaited "phase-one" signing. While the sign of cooperation in signing a deal is a positive, plenty of doubts exist about enforcement of the deal and whether it will unleash a wave of new Chinese buying as it was billed. With regards to ag purchases specifically, the language "based on market conditions" has become a real sticking point. While China can say it intends to buy U.S. soybeans and grains, if cheaper product is available out of South America or the Black Sea, that language would seem to offer cover. We have more conjecture than fact at this stage but the futures response has been less than encouraging so far. Soybeans led the downside pressure Wednesday, but the mantle has been passed to wheat markets overnight with Kansas City wheat featuring double-digit losses. Chicago wheat failing to close above the June highs and Kansas City wheat failing to follow through above $5.00 basis the March contract look like technical failures bears are ready to pounce on. OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial Average up 90.55 at 29,030.22 and the S&P 500 up 6.14 at 3,283.15 while the 10-Year Treasury yield ended at 1.788%. Early Thursday, the March DJIA futures are up 82 points. Asian markets are mixed with Japan's Nikkei 225 up 16.55 (0.07%) and China's Shanghai Composite down 15.96 points (-0.52%). European markets are lower with London's FTSE 100 down 34.49 points (-0.45%), Germany's DAX down 29.8 points (-0.22%) and France's CAC 40 down 3.13 points (-0.05%). The March Euro is up 0.001 at 1.120 and the March U.S. dollar index is down 0.040 at 96.920. The March 30-Year T-Bond is down 2/32nds, while February gold is up $0.80 at $1,554.80 and February crude oil is up $0.18 at $57.99. Soybeans on China's Dalian Exchange were down 0.46% while soybean meal was up 0.19%.