DTN Before The Bell Grain Comments

Morning CME Globex Update:

December corn was up 1/2 cent, November soybeans were up 1 1/2 cents, and December Chicago wheat was up 1/4 cent. All three grains were a little higher early Friday, but maintaining a quiet tone for the week as the fall harvest continues to make good progress. The U.S. dollar index is up .36 at its highest price in eight months and is giving investors pause about owning commodities.

Other Markets:

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

Corn:

December corn has hardly budged this week and it's not looking like Friday will be any different. Thursday's rain moved off to Ohio and the northeastern U.S., leaving the rest of the Corn Belt dry for the weekend. Some areas are still trying to dry out from this fall's rains, but for the most part, harvest is going well and no major issues are expected. Demand for corn is doing much better this fall, helped by low supplies in Brazil and warm weather that is extending the driving season and helping demand for ethanol. In spite of this fall's record corn harvest, December corn is slowly trending higher, in line with its seasonal tendency. DTN's National Corn Index closed at $3.09 Thursday, priced 42 cents below the December contract and near its highest price in three months. In outside markets, the U.S. dollar index is up .36 with some still expecting a rate hike in December.

Soybeans:

November soybeans were 1 1/2 cents higher early, helped by modest buying in soybean meal and higher overnight prices in China. Even though soybean prices closed lower Thursday, there was plenty of bullish export news for soybeans and meal to show that the demand side of the market remains active enough to support prices in their sideways range. Admittedly, USDA's crop estimate of 4.27 billion bushels is a lot and it won't be surprising to see that number get bumped a little higher in November. On the other hand, demand for soybeans continues at a blistering pace and we cannot confidently say yet if 2016-17 demand will be higher or lower than the crop estimate. Until more is known, November soybeans continue to trade sideways between $9.34 and $9.94. DTN's National Soybean Index closed at $9.05 Thursday, priced 70 cents below the November contract and up from its lowest price in six months.

Wheat:

December Chicago wheat was a quarter-cent higher after a quiet overnight session. According to USDA's Drought Monitor, southwestern Kansas and the Texas Panhandle are a little drier than a year ago, but other parts of the southwestern Plains are in better shape as winter planting gets done ahead of wheat's dormant time. There is still plenty of time for that to change by spring, but so far, the new wheat crop appears to have a good start and traders are finding no reason to be concerned about the market's ability to obtain wheat. December Chicago wheat has expanded its trading range, but remains confined to a sideways path near its lowest spot prices in ten years. DTN's National SRW index closed at $3.71 Thursday, priced 46 cents below the December contract and at its highest price in seven weeks.

Todd Hultman can be reachedat todd.hultman@dtn.com

Follow Toddon Twitter @ToddHultman1

(KA)

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