DTN Closing Grain Comments

General Comments:

Corn was up 3 1/4 cents in the December contract and up 3 cents in the July. Soybeans were up 4 3/4 cents in the November contract and up 4 1/4 cents in the July. Wheat closed down 6 1/4 cents in the December Chicago contract, down 7 cents in the December Kansas City and down 3 1/4 cents in the December Minneapolis contract.

The December U.S. dollar index is down 0.04 at 93.73. December gold is up $1.10 at $1,205.50 while December silver is up 18 cents and December copper is down $0.0130. The Dow Jones Industrial Average is down 39 points at 26,523. November crude oil is up $0.22 at $72.30. November heating oil is up $0.0192 while November RBOB gasoline is up $0.0134 and November natural gas is up 0.027.

Corn:

December corn gained 3 1/4 cents Tuesday, ending at $3.63 3/4 in quiet trading, while rain returned to Iowa, Minnesota, and Indiana. Light to moderate amounts are expected across the Midwest the next five days, but then more rain is forecast for the six- to 10-day period, a challenge for harvest efforts. The recent rains around northern Iowa may trim this year's crop estimate and those concerns plus increased export demand have helped to ease the latest harvest pressure. Late Monday, USDA said 16% of corn was harvested, roughly a week ahead of its usual pace. Early Tuesday, USDA said 9.4 million bushels (mb) (239,630 metric tons) of U.S. corn were sold to Mexico for 2018-19. The trend in corn is back to sideways after prices rejected last week's new contract low. DTN's National Corn Index closed at $3.17 Monday, up from its 2017 low and priced 44 cents below the December contract. In outside markets, the December U.S. dollar index is down 0.04 in quiet trading while the Federal Reserve met and likely discussed plans to increase the federal funds rate by a quarter-percent Wednesday afternoon.

Soybeans:

November soybeans traded 17 cents higher shortly after the 8:30 a.m. CDT open, but could only hold a gain of 4 3/4 cents on the day, coming to rest at $8.45 3/4. Similarly, December soybean meal was up $8.80 early, but closed $1.70 higher, at $309.20. As with corn, there are concerns of possible crop loss related to too much rain in the northern Midwest and more in the extended forecast does not help harvest efforts in the area. At 14% complete, the soybean harvest is making quick progress in other areas though, and a record crop is still expected. Trade problems with China are still the elephant sitting on prices, and there is no sign of movement yet. Aside from the political risk, prices appear to be making seasonal lows, supported by commercial net-longs while November prices are near their lowest level in nine years. DTN's National Soybean Index closed at $7.38 Monday, up from its lowest price in 11 years and priced $1.03 below the November contract, the weakest basis in at least 11 years.

Wheat:

December K.C. wheat fell back 7 cents to $5.22 Tuesday, pressured by noncommercial selling after USDA said 28% of the next U.S. winter wheat crop was planted as of Sunday. The rest of this week should be favorable for more planting progress with only light showers expected in the southwestern Plains. In the western Canadian Prairie, winter-like conditions have already arrived, making harvest difficult. Meanwhile, the forecast for Australia's wheat crops continues to look dry this week. So far in September, winter wheat prices have stayed within a narrow trading range, at the lower end of this year's prices. They are finding support, however, from this year's lower world wheat production, even though the U.S. has yet to see a pickup in exports. For now, December contracts for all three wheats are holding in a sideways range. DTN's National SRW index closed at $4.82 Monday, 45 cents below the December contract and up from its lowest price in two months. DTN's National HRW index closed at $4.88 Monday, also up from its lowest price in two months.

Todd Hultman can be reached at todd.hultman@dtn.com

Follow Todd Hultman on Twitter @ToddHultman1

(CZ)

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