DTN Early Word Grains 12/16 05:48

DTN Early Word Grains 12/16 05:48 Commodity Board Mostly Red as Investors Fixate on Higher Interest Rates March corn was down 2 1/2 cents, January soybeans were down 7 cents and March KC wheat was down 2 cents. Todd Hultman DTN Lead Analyst PRE-6 AM GLOBEX PRICES: March corn was down 2 1/2 cents, January soybeans were down 7 cents and March KC wheat was down 2 cents. CME GLOBEX RECAP: Early Friday, stock futures in the U.S. were trading lower, extending Thursday's losses and joined by stocks in Europe and Asia. Stock prices set back Thursday after the Swiss National Bank and Bank of England also increased interest rates by 50 basis points each. The interesting thing about this week's selling is that the yield on 10-year T-notes is at 3.45%, near the lowest yield in three months and a sign bond investors expect the Fed's push for higher interest rates will be successful restraining inflation. Nearly all commodities are trading lower Friday morning. OUTSIDE MARKETS: Previous closes Thursday showed the Dow Jones Industrial Average down 764.13 at 33,202.22 and the S&P 500 down 99.57 at 3,895.75, while the 10-Year Treasury yield ended at 3.45%, near the lowest yield in three months. Early Friday, March Dow Jones futures are trading down 363 points. Asian markets are lower with Japan's Nikkei 225 index down 1.97% and China's Shanghai Composite Index down 0.02%. European markets are lower with the spot futures of the London FTSE 100 trading down 0.35%, spot futures of Germany's DAX trading down 0.63% and spot futures of France's CAC Index trading down 0.86%. The March euro is down $0.0017 at $1.0615. The March U.S. Dollar Index is up 0.15 at 104.69. The March 30-year T-bond is down 23/32nds, while February gold is down $1.00 at $1,786.80 and February crude oil is down $1.83 at $74.32. On China's Dalian exchange, January corn was up 0.2%, January soybeans were up 0.2%, January soybean meal was up 1.1% and January soybean oil was down 1.4%. February Malaysian palm oil is trading up 0.5%.