DTN Early Word Grains 01/29 05:51

DTN Early Word Grains 01/29 05:51 Grain Markets Sharply Lower Monday on Middle East Escalation, China Evergrande News March corn is down 4 1/2 cents per bushel, March soybeans are down 8 1/4 cents, March KC wheat is down 13 1/4 cents, March Chicago wheat is down 10 cents and March Minneapolis wheat is down 8 cents. Kent Beadle, DTN Contributing Analyst EARLY MORNING GLOBEX NET CHANGES: March corn is down 4 1/2 cents per bushel, March soybeans are down 8 1/4 cents, March KC wheat is down 13 1/4 cents, March Chicago wheat is down 10 cents and March Minneapolis wheat is down 8 cents. CME GLOBEX RECAP: World equity markets and U.S. equity markets are mixed Monday morning. Support is coming from market data that has some sectors of the economy slowing but not at a rate that would suggest recession. This is the "Goldilocks" outcome that the Federal Reserve is looking for and it resulted in a new high close in the S&P 500 on Friday. Weighing on sentiment Monday morning is the situation in China where a Hong Kong court ordered the liquidation of Evergrande, a Chinese real estate developer with many billions of dollars of debt. In addition, a drone strike at a U.S. military base in Jordan killed three servicemen, injured dozens, and opens a more significant chance of a broader escalation in the region. This week, we will see a number of important economic reports. On Tuesday the Case-Schiller home price index will be released in addition to Job Openings and Consumer Confidence. Wednesday we get the Employment Cost Index along with the results of the Fed meeting where traders expect the Fed to hold rates steady. On Thursday, we get the U.S. Productivity and ISM manufacturing Index. Friday is the very important U.S. Non-farm Payrolls report. In agriculture, in addition to the normal weekly reports, we will see a Cattle Inventory report on Wednesday afternoon while on Thursday, we will get the Fats and Oils report and the Grain Crushings and Co-Products report. OUTSIDE MARKETS: Previous closes Friday showed the Dow Jones Industrial Average up 60.30 at 38,109.43 and the S&P 500 down 3.19 at 4,890.97, The 10-Year Treasury yield ended at 4.16%. Early Monday, the March Dow Jones Futures are down 13 points. European markets are mixed with the spot futures of London's FTSE 100 trading up 0.12%, spot futures of Germany's DAX is trading down 0.42% and the spot futures of France's CAC 40 Index up 0.01%. Asian markets are mixed with Japan's Nikkei 225 Index up 0.77% and China's Shanghai Composite Index down 0.92%.