DTN Early Word Grains 02/27 05:55

DTN Early Word Grains 02/27 05:55 Grains Lower as Outsides Remain in Risk-off Mode May corn is down 1 1/2 cents per bushel, May soybeans are down 3 cents, and May KC wheat is down 2 1/4 cents. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: May corn is down 1 1/2 cents per bushel, May soybeans are down 3 cents, and May KC wheat is down 2 1/4 cents. CME Globex Recap: Another night of heavy selling in equity markets as most European indices are down over 2.0% while U.S. futures are pointed toward 1.0% losses. The coronavirus-correction is also hitting energy markets especially hard as spot month West Texas Intermediate traded down to $47.55 per barrel overnight, the lowest trade since January 2019. Natural gas is also getting hit especially hard with spot prices at the lowest level since March of 2016. Until equity and energy markets can stabilize, the recession drums will continue to beat. Grain markets are weak overnight, unable to stand on their own as the rest of the financial world melts down. While the selling has been severe the last couple days in outside markets, it still doesn't feel as though we've reached outright panic, which could be a concern for grains if it ever does happen. While headlines have driven a lot of the selling of late, traders are still cognizant of the fact that without a major weather disruption this spring or summer, the corn market could be looking at the largest ending stocks in 30-years. OUTSIDE MARKETS: Previous closes on Wednesday showed the Dow Jones Industrial Average down 123.77 at 26,957.59 and the S&P 500 down 11.82 at 3,128.21 while the 10-Year Treasury yield ended at 1.31%. Early Thursday, the March DJIA futures are down 241 points. Asian markets are mixed with Japan's Nikkei 225 down 477.96 (-2.13%) and China's Shanghai Composite up 3.4 points (0.11%). European markets are lower with London's FTSE 100 down 148.52 points (-2.11%), Germany's DAX down 326.12 points (-2.55%) and France's CAC 40 down 134.93 points (-2.37%). The March Euro is up 0.004 at 1.090 and the March U.S. dollar index is down 0.218 at 98.720. The March 30-Year T-Bond is up 5/32nds, while April gold is up $5.10 at $1,648.20 and April crude oil is down $1.04 at $47.69. Soybeans on China's Dalian Exchange were up 0.31% while soybean meal was up 0.91%.