DTN Early Word Grains         05/20 05:55
   Corn, Wheat Sag Lower Early Friday; China Cuts Interest Rate

   July corn was down 5 1/2 cents, July soybeans were up 1 cent and July KC
wheat was down 16 cents.

Todd Hultman
DTN Lead Analyst

   Pre-6 a.m. Globex Prices: July corn was down 5 1/2 cents, July soybeans were
up 1 cent and July KC wheat was down 16 cents.

   CME GLOBEX RECAP: Early Friday, U.S. stocks on the Dow Jones Industrials are
trading higher, along with gains in Europe and Asia after the People's Bank of
China unexpectedly cut its prime rate on five-year loans from 4.60% to 4.45%.
Surprisingly, China's yuan is also trading higher, at 6.68 per U.S. dollar
early Friday. Deere is in line for Friday's earnings reports and wheat is
starting lower in spite of freeze warnings in the northwestern Plains this
weekend.

   OUTSIDE MARKETS: Previous closes Thursday showed the Dow Jones Industrial
Average down 236.94 at 31,253.13 and the S&P 500 down 22.89 at 3,900.79 as the
10-Year Treasury yield ended at 2.85%, down from the highest level in three and
a half years. Early Friday, June Dow Jones futures are trading up 309 points.
Asian markets are higher with Japan's Nikkei 225 index up 1.27% and China's
Shanghai Composite Index up 1.60%. European markets are higher with the spot
futures of the London FTSE 100 trading up 1.91%, spot futures of Germany's DAX
trading up 2.06% and spot futures of France's CAC Index trading up 1.16%. The
June euro is down $0.0023 at $1.0586. The June U.S. Dollar Index is up 0.19 at
102.95. The June 30-year T-bond is down 7/32nds, while June gold is up $2.00 at
$1,843.20 and June crude oil is down $0.56 at $111.65. On China's Dalian
exchange, September corn was down 0.2%, July soybeans were up 0.7%, September
soybean meal was up 0.6% and September soybean oil was up 0.2%. June Malaysian
palm oil is trading up 0.4%.