DTN Early Word Grains 05/20 05:55

DTN Early Word Grains 05/20 05:55 Corn, Wheat Sag Lower Early Friday; China Cuts Interest Rate July corn was down 5 1/2 cents, July soybeans were up 1 cent and July KC wheat was down 16 cents. Todd Hultman DTN Lead Analyst Pre-6 a.m. Globex Prices: July corn was down 5 1/2 cents, July soybeans were up 1 cent and July KC wheat was down 16 cents. CME GLOBEX RECAP: Early Friday, U.S. stocks on the Dow Jones Industrials are trading higher, along with gains in Europe and Asia after the People's Bank of China unexpectedly cut its prime rate on five-year loans from 4.60% to 4.45%. Surprisingly, China's yuan is also trading higher, at 6.68 per U.S. dollar early Friday. Deere is in line for Friday's earnings reports and wheat is starting lower in spite of freeze warnings in the northwestern Plains this weekend. OUTSIDE MARKETS: Previous closes Thursday showed the Dow Jones Industrial Average down 236.94 at 31,253.13 and the S&P 500 down 22.89 at 3,900.79 as the 10-Year Treasury yield ended at 2.85%, down from the highest level in three and a half years. Early Friday, June Dow Jones futures are trading up 309 points. Asian markets are higher with Japan's Nikkei 225 index up 1.27% and China's Shanghai Composite Index up 1.60%. European markets are higher with the spot futures of the London FTSE 100 trading up 1.91%, spot futures of Germany's DAX trading up 2.06% and spot futures of France's CAC Index trading up 1.16%. The June euro is down $0.0023 at $1.0586. The June U.S. Dollar Index is up 0.19 at 102.95. The June 30-year T-bond is down 7/32nds, while June gold is up $2.00 at $1,843.20 and June crude oil is down $0.56 at $111.65. On China's Dalian exchange, September corn was down 0.2%, July soybeans were up 0.7%, September soybean meal was up 0.6% and September soybean oil was up 0.2%. June Malaysian palm oil is trading up 0.4%.