DTN Early Word Grains 01/30 06:00

DTN Early Word Grains 01/30 06:00 Grains Weak as Financial Markets Weigh March corn is down 1 cent per bushel, March soybeans are down 1 3/4 cents, and March KC wheat is down 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 3/4 cents, and March KC wheat is down 1/2 cent. CME Globex Recap: Equity markets around the globe sold off overnight, responding to the latest coronavirus data and weakness in Chinese currency markets. Last night, the Chinese offshore renminbi rate fell past 7:1 against the U.S. Dollar Index for the first time in 2019. The onshore rate remains closed because of Lunar New Year festivities but will likely express that weakness when markets reopen next week. The currency weakness hit Asian equities hard as they remain the proxy for Chinese stocks that are closed. Hong Kong's Hang Send was down 2.62%, South Korea's KOSPI was down 1.71% and Taiwan's Taiex was down almost 5.0%. Ag markets are lower across the board with the exception of Minneapolis wheat which is posting small gains. Grains feel like a momentum trade at the moment and the momentum is decidedly negative given headwinds from currency, energy and equity markets. While commodities can be countercyclical to the larger financial markets at times, now does not feel like a time grain markets can move against the tide. Export sales later Thursday morning should help set the tone for the day session. OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial Average up 11.60 at 28,734.45 and the S&P 500 down 2.84 at 3,276.24 while the 10-Year Treasury yield ended at 1.594%. Early Thursday, the March DJIA futures are down 176 points. Asian markets are lower with Japan's Nikkei 225 down 401.65 (-1.72%) and China's Shanghai Composite down 84.23 points (-2.75%). European markets are lower with London's FTSE 100 down 55.42 points (-0.74%), Germany's DAX down 120.82 points (-0.91%) and France's CAC 40 down 72.46 points (-1.22%). The March Euro is down 0.001 at 1.100 and the March U.S. dollar index is up 0.061 at 97.880. The March 30-Year T-Bond is up 20/32nds, while February gold is up $8.20 at $1,578.60 and March crude oil is down $0.91 at $52.42. Soybeans on China's Dalian Exchange were down 0.7% while soybean meal was down 0.88%.