DTN Early Word Grains         06/05 05:58
   Grains Higher Into Weekend as Funds Support

   July corn is up 1/2 cent per bushel, July soybeans are up 2 1/2 cents, and
July KC wheat is up 1 1/4 cents.

Tregg Cronin
DTN Contributing Analyst

   Pre-6 a.m. Globex Prices: July corn is up 1/2 cent per bushel, July soybeans
are up 2 1/2 cents, and July KC wheat is up 1 1/4 cents.

   CME Globex Recap: Another day, another rally in global equity markets which
is becoming the norm as opposed to the exception investors had become so used
to February through March. On Wednesday, the ADP private payroll report showed
fewer jobs lost during the month of May than analysts had feared, setting the
tone for a more optimistic May unemployment report from the government later
Friday morning. The jobs report will undoubtedly set the tone into the weekend.
Higher energy markets with crude oil making fresh highs for the move. Precious
metals are weaker. Grain markets are steady to higher across the board with
favorable technical patterns emerging for many contracts. With the structure of
most ag markets featuring sizable to near record short positions held by the
managed funds, additional covering should support into the weekend and possibly
into next week.

   OUTSIDE MARKETS: Previous closes on Thursday showed the Dow Jones Industrial
Average up 11.93 at 26,281.82 and the S&P 500 down 10.52 at 3,122.87 while the
10-Year Treasury yield ended at 0.82%. Early Friday, the June DJIA futures are
up 290 points. Asian markets are higher with Japan's Nikkei 225 up 167.99
(0.74%) and China's Shanghai Composite up 11.55 points (0.4%). European markets
are higher with London's FTSE 100 up 77.06 points (1.22%), Germany's DAX up
253.72 points (2.04%) and France's CAC 40 up 113.22 points (2.26%). The June
Euro is down 0.003 at 1.130 and the June U.S. dollar index is up 0.148 at
96.805. The September 30-Year T-Bond is down 25/32nds, while August gold is
down $13.30 at $1,714.10 and July crude oil is up $0.62 at $38.03. Soybeans on
China's Dalian Exchange were down 1.24% while soybean meal was up 0.32%.