DTN Early Word Grains 08/26 06:01

DTN Early Word Grains 08/26 06:01 Grains Rally on Trump Trade Comments December corn is up 3 1/4 cents per bushel, November soybeans are up 13 1/2 cents, and December K.C. wheat is up 1 cent. By Todd Hultman DTN Lead Analyst 6:00 a.m. CME Globex: December corn is up 3 1/4 cents per bushel, November soybeans are up 13 1/2 cents, and December K.C. wheat is up 1 cent. CME Globex Recap: Global equity markets are rebounding overnight after comments from President Trump suggested China is eager to get back to negotiations and put an end to the trade war. The President made the comments on the sidelines of the G7 Summit in France, saying China made a phone call about restarting talks following the increase in tariffs by both countries at the end of last week, resulting in heavy equity losses around the world. Markets have seen this song and dance before, so expect some skepticism until more concrete details emerge. However, the prospect of the world's two largest economies finally ending their trade spat would be supportive to markets of all shapes and sizes. Grain markets are higher, supported by the trade news but also from traders watching temperature forecasts closely for the month of September. An early frost is about the only event left that could materially impact supply at this stage of crop development. A trade deal would take precedence over the other demand details that are not bullish, especially if an agreement contained meaningful goodwill purchases of U.S. commodities. OUTSIDE MARKETS: Previous closes on Friday showed the Dow Jones Industrial Average down 623.34 at 25,628.90 and the S&P 500 down 75.84 at 2,922.95 while the 10-Year Treasury yield ended at 1.528%. Early Monday, the September DJIA futures are up 153 points. Asian markets are lower with Japan's Nikkei 225 down 449.87 (-2.17%) and China's Shanghai Composite down 33.86 points (-1.17%). European markets are mixed with London's FTSE 100 down 33.2 points (-0.47%), Germany's DAX up 60.71 points (0.52%) and France's CAC 40 up 35.03 points (0.66%). The September Euro is down 0.003 at 1.110 and the September U.S. dollar index is up 0.305 at 97.835. The September 30-Year T-Bond is up 9/32nds, while December gold is up $3.50 at $1,541.10 and October crude oil is up $0.36 at $54.53. Soybeans on China's Dalian Exchange were up 1.47% while soybean meal was up 1.15%.