DTN Early Word Grains         01/27 05:55
   Grains Sharply Lower as Coronavirus Stokes Fears

   March corn is down 7 1/2 cents per bushel, March soybeans are down 12 1/2
cents, and March KC wheat is down 8 3/4 cents.

By Tregg Cronin
DTN Contributing Analyst

6:00 a.m. CME Globex:   March corn is down 7 1/2 cents per bushel, March
soybeans are down 12 1/2 cents, and March KC wheat is down 8 3/4 cents.

CME Globex Recap:   Every asset on the planet except for U.S. Treasuries seems
to be sharply lower overnight as fears of the spreading coronavirus hit home.
The deadly virus which is spreading across China fits the exact bill of a
"black swan" event but unfortunately, it would be the second black swan event
in China in as many years. The outbreaks of African Swine Fever and coronavirus
show how far China has to go before they will truly reach the ranks of a
developed country. Grains are sharply lower on fears grain and protein demand
could be hit hard in the world's second largest economy, especially as China
heads into its Lunar New Year celebration which is one of the largest drivers
of economic activity the entire year. If China has not purchased any U.S.
agriculture goods up to this point, we would be surprised if they do it amid
this crisis.

OUTSIDE MARKETS:   Previous closes on Friday showed the Dow Jones Industrial
Average down 170.36 at 28,989.73 and the S&P 500 down 30.07 at 3,325.54 while
the 10-Year Treasury yield ended at 1.681%. Early Monday, the March DJIA
futures are down 425 points. Asian markets are lower with Japan's Nikkei 225
down 483.67 (-2.03%) and China's Shanghai Composite closed. European markets
are higher with London's FTSE 100 down 176.12 points (-2.32%), Germany's DAX
down 286.6 points (-2.11%) and France's CAC 40 down 133.73 points (-2.22%). The
March Euro is down 0.001 at 1.110 and the March U.S. dollar index is up 0.030
at 97.680. The March 30-Year T-Bond is up 38/32nds, while February gold is up
$11.80 at $1,583.70 and March crude oil is down $1.76 at $52.43. The Dalian
Exchange is closed.