DTN Early Word Grains 02/05 05:58

DTN Early Word Grains 02/05 05:58 Grain Markets Higher as Palm Corrects March corn is up 1/2 cent per bushel, March soybeans are up 6 1/2 cents, and March KC wheat is up 4 1/2 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: March corn is up 1/2 cent per bushel, March soybeans are up 6 1/2 cents, and March KC wheat is up 4 1/2 cents. CME Globex Recap: Equities are rallying around the globe overnight, continuing the sentiment that began Tuesday that resilient economic growth will outweigh slow-growth ideas related to the coronavirus. That said, crude oil is now in a bear market and a panel from OPEC said the group is considering cutting oil output by another 500,000 barrels per day to help offset the impact from the virus. As we continue to see, the impact of U.S. shale production is wreaking havoc on the traditional ways of looking at global oil flows, especially the impact OPEC has with such a large producer outside their cartel. Grains are stronger overnight, led by soybean oil and Kansas City wheat, two markets on the receiving end of weakness as of late. Soybean oil is benefitting from another strong performance in Malaysian Palm Oil overnight which is up another 4-5%. The global vegetable oil balance sheet remains at the tightest level in 40-years, regardless of the price correction of late. This should continue to provide underlying support in 2020. OUTSIDE MARKETS: Previous closes on Tuesday showed the Dow Jones Industrial Average up 407.82 at 28,807.63 and the S&P 500 up 48.67 at 3,248.92 while the 10-Year Treasury yield ended at 1.603%. Early Wednesday, the March DJIA futures are up 236 points. Asian markets are higher with Japan's Nikkei 225 up 234.97 (1.02%) and China's Shanghai Composite up 34.8 points (1.25%). European markets are higher with London's FTSE 100 up 53.83 points (0.72%), Germany's DAX up 177.65 points (1.12%) and France's CAC 40 up 59.96 points (1.01%). The March Euro is down 0.002 at 1.110 and the March U.S. dollar index is up 0.071 at 97.880. The March 30-Year T-Bond is down 20/32nds, while April gold is up $0.50 at $1,556.00 and March crude oil is up $1.04 at $50.65. Soybeans on China's Dalian Exchange were up 0.15% while soybean meal was up 0.54%.