DTN Before The Bell Grain Comments

Morning CME Globex Update:

December corn was up 2 3/4 cents, November soybeans were up 8 1/2 cents, and December Chicago wheat was up 2 1/4 cents. At 8 a.m. CDT, USDA reported China bought 4.4 million bushels (120,000 mt) of U.S. soybeans for 2016-17. Before the announcement, all three grains were higher with commercial buying in soybeans and meal evident, even before USDA's weekly export sales were released.

Other Markets:

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

Corn:

December corn was 2 3/4 cents higher early Thursday, staying well-supported in the face of this fall's big harvest while the only chances for rain in the Corn Belt the next few days are in the eastern Midwest. At 7:30 a.m. CDT, USDA said last week's export sales and shipments of corn totaled 22.6 and 49.7 million bushels respectively, a neutral combination for the week that puts 2016-17 exports up 51% from a year ago. The bigger concern of course, is that a record harvest is on the way and mostly dry weather across the Corn Belt the next few days will help that effort. December corn remains under bearish harvest pressure, but is holding firm in its sideways range, thanks to support from commercials and the demand side of the market. DTN's National Corn Index closed at $2.88 Wednesday, priced 41 cents below the December contract and up from its lowest price in seven years. In outside markets, the U.S. dollar index is up .24 after the U.S. Commerce Department said real GDP was up 1.3% in the second quarter from a year ago, slightly more than was previously estimated. November crude oil is down 10 cents a barrel as traders consider Wednesday's so-called agreement among OPEC members.

Soybeans:

At 8 a.m. CDT, USDA reported China bought 4.4 million bushels (120,000 mt) of U.S. soybeans for 2016-17. Before the announcement, November soybeans were higher, rescued from the low end of their trading range by commercial buying in soybeans and in meal ahead of USDA's weekly export sales report. USDA said last week's export sales and shipments of soybeans totaled a neutral 62.2 and 14.5 million bushels respectively, putting 2016-17 exports up 78% from a year ago, but a little below USDA's estimated pace. November soybeans continue to experience bearish selling pressure from anecdotal reports of high yields this fall and chronic weakness in meal prices, but so far, soybeans are holding within their sideways range and staying above the August low of $9.37. DTN's National Soybean Index closed at $8.84 Wednesday, priced 62 cents below the November contract and at its lowest price in five months.

Wheat:

December Chicago wheat was up a couple cents early with light commercial buying and modest bullish influence from corn. Winter wheat planting continues to have a green light of clear weather in the southwestern Plains, but will be contending with rain in the eastern Midwest for at least the next seven days. Early Thursday, USDA said last week's export sales and shipments of wheat totaled 21.0 and 31.0 million bushels respectively, a bullish combination for the week that has 2016-17 exports up 28% from last year's depressed pace. December Chicago wheat prices continue to be plagued by excessive global supplies and are likely to keep trading roughly sideways at these cheap levels as this year's growing season draws to a close in the Northern Hemisphere. DTN's National SRW index closed at $3.51 Wednesday, priced 53 cents below the December contract and still near its lowest cash price in seven years.

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

Follow Toddon Twitter @ToddHultman1

(KA)

Copyright 2016 DTN/The Progressive Farmer. All rights reserved.