DTN Early Word Grains 08/31 05:50

DTN Early Word Grains 08/31 05:50 Grains Weak as Commodity Sector Heads Lower December corn is down 8 1/4 cents per bushel, November soybeans are down 11 3/4 cents, and December KC wheat is down 7 1/2 cents. Tregg Cronin DTN Contributing Analyst PRE-6 a.m. GLOBEX PRICES: December corn is down 8 1/4 cents per bushel, November soybeans are down 11 3/4 cents, and December KC wheat is down 7 1/2 cents. CME GLOBEX RECAP: Weaker trade in stocks globally overnight, although U.S. futures are hanging around unchanged mid-week. Ever since Fed Chair Powell's speech last Friday in Jackson Hole, markets seem to accepting the fact the Fed will indeed keep tightening until inflation is under control, regardless of worrying economic data. Energy markets are being flattened overnight with spot crude oil futures down over 3.0% and solidly below $90.00 per barrel. Crude rejected the 50-day moving average and looks poised to retest the mid-August lows. The U.S. Dollar Index is higher overnight, back within pips of the multi-decade highs set Monday. Metals are weaker with silver leading losses, down 2.5%. Grain markets are lower, following the overall downtrend in commodities led by energies. It would seem the mantra of "don't fight the Fed" is being felt across multiple asset classes, making the appetite for managed funds to come surging into grains small. OUTSIDE MARKETS: Previous closes Tuesday showed the Dow Jones Industrial Average down 308.12 at 31,790.87 and the S&P 500 down 44.45 at 4,030.61 while the 10-Year Treasury yield ended at 3.11%. Early Wednesday, the September DJIA futures are down 14 points. Asian markets are lower with Japan's Nikkei 225 down 104.05 (-0.37%) and China's Shanghai Composite down 25.08 points (-0.78%). European markets are lower with London's FTSE 100 down 92.42 points (-1.26%), Germany's DAX down 82.76 points (-0.64%) and France's CAC 40 down 59.77 points (-0.95%). The September Euro is down 0.005 at 1.000 and the September U.S. Dollar Index is up 0.326 at 109.075. The September 30-Year T-Bond is down 20/32nds, while December gold is down $14.00 at $1,722.30 and October crude oil is down $2.91 at $88.73. Corn on China's Dalian Exchange was down 0.25% while soybeans were up 1.08% and soybean meal was up 1.92%.