DTN Early Word Grains 05/22 06:01

DTN Early Word Grains 05/22 06:01 Grains Weak Ahead of Memorial Day Break July corn is down 1 1/2 cents per bushel, July soybeans are down 4 1/2 cents, and July KC wheat is down 4 1/2 cents. Tregg Cronin DTN Contributing Analyst Pre-6 a.m. Globex Prices: July corn is down 1 1/2 cents per bushel, July soybeans are down 4 1/2 cents, and July KC wheat is down 4 1/2 cents. CME Globex Recap: Weaker equity markets around the globe overnight with a weaker open expected in the U.S. For the week, however, equity markets are still higher with S&P futures sitting on an 80-point gain. Late-week pressure is being tied to China abandoning a gross domestic product target for the first time in history as it grapples with the worst downturn since the 1970's. Analysts were already skeptical of the economic data China released but if they choose to release even less going forward, analysts could really be kept in the dark. Official estimates suggest economic activity in China contracted by 6.8% in the first quarter which might suggest the contraction will be even worse in quarter two if they are not willing to release guidance. The concern about China bled into commodity markets and is keeping trade week on the final session Friday before the Memorial Day weekend. Post-Memorial Day trade will increasingly focus on weather as planting wraps up and attention shifts to what is required to achieve top end yields. Energy markets are sharply weaker while precious metals are firmer. OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial Average down 101.78 at 24,474.12 and the S&P 500 down 23.10 at 2,971.61 while the 10-Year Treasury yield ended at 0.677%. Early Friday, the June DJIA futures are down 95 points. Asian markets are lower with Japan's Nikkei 225 down 164.15 (-0.8%) and China's Shanghai Composite down 54.16 points (-1.89%). European markets are lower with London's FTSE 100 down 70.27 points (-1.17%), Germany's DAX down 43.17 points (-0.39%) and France's CAC 40 down 7.36 points (-0.17%). The June Euro is down 0.006 at 1.090 and the June U.S. dollar index is up 0.437 at 99.840. The June 30-Year T-Bond is up 32/32nds, while June gold is up $14.50 at $1,736.40 and July crude oil is down $2.04 at $31.88. Soybeans on China's Dalian Exchange were up 2.56% while soybean meal was up -0.04%.