DTN Early Word Grains 03/06 06:02

DTN Early Word Grains 03/06 06:02 Grains Soft to Put Damper on Positive Week May corn is down 2 1/2 cents per bushel, May soybeans are down 3 1/2 cents, and May KC wheat is down 1 cent. By Tregg Cronin DTN Contributing Analyst 6:00 a.m. CME Globex: May corn is down 2 1/2 cents per bushel, May soybeans are down 3 1/2 cents, and May KC wheat is down 1 cent. CME Globex Recap: Heavy selling around the globe to finish a tough week in financial markets. After the 3% losses in U.S. equities Thursday, Asia and Europe reacted in-kind overnight and U.S. futures are poised for another 2-3% drop Friday. Market fears were stoked when coronavirus fears popped up in California, Colorado, New York, New Jersey, Maryland and Tennessee. Cases of the virus are likely to pick up in the U.S. going forward as testing ramps up by the Centers for Disease Control and Prevention. Something which may give investors solace is the fact the Shanghai Composite has recovered all of its losses sustained since January on the back of the coronavirus. Until activity is restored to normal however, equity markets are likely to remain under pressure. Grain markets are mostly weaker with the exception of Minneapolis wheat and soy meal. Despite limited direct impact from the virus, grains are subject to the same macro-driven headline selling as all other asset classes at the moment. Traders will be anxious to get closer to April so the immediate focus can be more about spring weather, acreage and potential demand ramifications in 2020/21. Until then, whipsaw trade looks to continue. OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial Average down 969.58 at 26,121.28 and the S&P 500 down 106.18 at 3,130.12 while the 10-Year Treasury yield ended at 0.926%. Early Friday, the March DJIA futures are down 585 points. Asian markets are lower with Japan's Nikkei 225 down 579.37 (-2.72%) and China's Shanghai Composite down 37.17 points (-1.21%). European markets are lower with London's FTSE 100 down 209.06 points (-3.12%), Germany's DAX down 419.18 points (-3.51%) and France's CAC 40 down 193.1 points (-3.6%). The March Euro is up 0.014 at 1.130 and the March U.S. dollar index is down 0.905 at 95.885. The June 30-Year T-Bond is up 136/32nds, while April gold is up $19.90 at $1,687.90 and April crude oil is down $1.78 at $44.12. Soybeans on China's Dalian Exchange were up 2.7% while soybean meal was down 0.63%.