DTN Before The Bell Grain Comments

By Darin Newsom
DTN Senior Analyst

Morning CME Globex Update:

The grain and oilseed complex showed little change over the course of Monday morning, though soybeans did gain a bit of bullish momentum. The energy complex grew more bullish though, aided by a slowly sagging U.S. dollar and increased tension in the Middle East.

Other Markets:

DJIA futures	Higher
U.S. Dollar Index:	Lower
Gold:	Lower
Crude Oil:	Higher

Corn:

Corn contracts held at losses near 1 cent through the end of overnight trade Monday morning. The market seemed caught between spillover support from the higher soybean market and spillover weakness from wheat. As discussed in DTN's Early Word Grains commentary, traders are likely sitting on the sidelines through the early part of Monday's session, waiting to see what weekly export inspections were last week. Given the time of year it is, the market is also keeping an eye on weather forecasts with rain moving across parts of the U.S. Midwest.

Soybeans:

Soybeans were able to hold overnight gains through early Monday morning, with hints of commercial buying providing support. However, changes in overnight futures spreads have to be viewed conservatively given the low volume of trade in the August contract. As discussed in DTN's Early Word Grains commentary, most of the overnight support was likely tied to last week's sharp sell-off in the futures and cash markets. Weekly export inspections (for the week ending Thursday, May 10) aren't expected to get many excited later Monday morning.

Wheat:

Rain over parts of the U.S. Southern Plains (HRW) and Midwest (SRW) growing areas through early Monday morning had the wheat complex on the defensive. July Kansas City finished overnight trade near its session low, with a test of minor (short-term) support near $5.11 1/2 as the day progresses looking more likely. On the bullish side of the ledger, July KC is nearing a short-term oversold situation which could spark a new round of buying interest.

Darin Newsom can be reached at darin.newsom@dtn.com

FollowDarin on Twitter @DarinNewsom

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