DTN Before The Bell Grain Comments

Morning CME Globex Update:

December corn was unchanged, November soybeans were down 1 3/4 cents, and December Chicago wheat was up 3 cents. At 8 a.m. CDT, USDA announced that 4.6 million bushels (126,000 mt) of U.S. soybeans were sold to unknown destinations for 2016-17. Before the announcement, grains were quietly mixed after USDA provided another favorable report of row crop conditions late Monday.

Other Markets:

Dow Jones:	Lower
U.S. Dollar Index:	Higher
Gold:	Lower
Crude Oil:	Higher

Corn:

December corn was steady early Tuesday with scattered showers in the central and southwestern Plains. DTN's five-day forecast has chances for moderate rain amounts in the southwestern Plains, but only light amounts are expected in the rest of the Corn Belt. There will be a few drops on the Farm Progress show in Boone, Iowa where DTN's Bryce Anderson and Darin Newsom are speaking. Late Monday, USDA said 92% of corn had reached the dough stage, 60% was dented, 9% of the crop was considered mature and 75% was rated good-to-excellent, the same as last week. Overall, crop conditions remain highly favorable and there are no significant threats in view as we head toward September. December corn remains under bearish pressure and is challenging its contract low. DTN's National Corn Index closed at $2.81 Monday, priced 40 cents below the December contract and even with its lowest price in 22 months. In outside markets, the U.S. dollar index is up .30, keeping a firm tone while some continue expect another rate hike in September.

Soybeans:

At 8 a.m. CDT, USDA announced that 4.6 million bushels (126,000 mt) of U.S. soybeans were sold to unknown destinations for 2016-17. Before the announcement, November soybeans were a couple cents lower after trading in a narrow range overnight. As with corn, USDA continues to find the soybean crops doing well. USDA said that 94% of soybeans had reached the pod setting stage, 5% were dropping leaves, and 73% of the crop was rated good-to-excellent, up from 72% a week ago. There has not been a significant weather threat seen since June's hot temperatures as frequent rains and moderate summer temperatures have kept crops protected. Fortunately for soybean producers, demand is expected to almost keep pace with this year's record crop, but the fact that 4.09 billion bushels or so of new soybean supplies will soon be hitting the market is keeping November soybean prices under bearish pressure with support holding so far at $9.43. DTN's National Soybean Index closed at $9.32 Monday, priced 32 cents below the November contract and near its lowest prices in four months.

Wheat:

December Chicago wheat was a few cents higher early Tuesday, trying for a bounce, but still having no bullish arguments to support a higher price. Late Monday, USDA said 81% of the spring wheat harvest was done with South Dakota just 9 percentage points from the finish line. DTN's five-day forecast expects moderate showers around the southwestern Plains which will help soil moisture in time for planting next month, but the decision to plant this year is not an easy one with hard red winter wheat prices at their lowest level in 11 years (see Friday's DTN article, "A Somber Decision"). This month's decision by commercials to not add to positions when prices dipped lower led to last week's new contract lows and wheat will need that commercial support back before prices can regain a footing. December Chicago wheat remains under bearish pressure. DTN's National SRW index closed at $3.38 Monday, priced 59 cents below the December contract and at its lowest cash price in nearly seven years.

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

FollowTodd on Twitter @ToddHultman1

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