DTN Closing Grain Comments

General Comments:

Corn was down 3/4 cent in the March contract and down 1 3/4 cent in the December. Soybeans were up 1/2 cent in the March contract and up 6 1/2 cents in the November. Wheat closed up 3/4 cent in the March Chicago contract, up 3 cents in the March Kansas City, and up 5 1/4 cents in the March Minneapolis contract.

The March U.S. dollar index is up 0.11 at 99.72. April gold is up $9.80 at $1,218.10 while March silver is unchanged and March copper is down $0.0270. The Dow Jones Industrial Average is down 12 at 19,879. March crude oil is down $0.01 at $53.87. March heating oil is down $0.0104 while March RBOB gasoline is down $0.0361 and March natural gas is up $0.013.

Corn:

March corn finished down 3/4 cent in a quiet day of trading that protected Wednesday's 8 1/2-cent gain. USDA said early Thursday that last week's corn export sales and shipments totaled 45.0 million bushels and 30.1 mb respectively, neutral amounts for the week that shows total exports up 65% in 2016-17 from a year ago. A short time later, USDA reported sales of 4.3 mb (110,000 metric tons) of U.S. corn to Japan and another 5.5 mb (140,000 mt) to unknown, both for 2016-17. Add this to the recent record-high pace of ethanol production and USDA's estimates for increased meat production in 2017 and the demand side of corn is doing well. Brazil's estimated corn harvest of 3.4 billion bushels (86.5 million metric tons) remains a bearish concern, but is still months away from export. So far, March corn continues to trend higher, taking advantage of this active demand season. DTN's National Corn Index closed at $3.32 Wednesday, priced 36 cents below the March contract and near its highest price in seven months. In outside markets, it was also a relatively quiet day with the March U.S. dollar index up 0.11.

Soybeans:

March soybeans closed up a half-cent Thursday, staying in the middle of its two-month sideways range as traders ponder soybeans' future course. Early Thursday, USDA said last week's export sales and shipments of soybeans totaled 22.9 and 56.0 million bushels respectively, a bullish combination for the week that has total exports up 21% in 2016-17 from a year ago. It is somewhat surprising that U.S. soybean sales are holding up this well while Brazil's harvest is making its way to ports, but so far, FOB soybean prices are similar for both countries. March soybeans continue to trade within the middle of its two-month sideways range while November soybeans have held firm and are still within striking distance of their January high. DTN's National Soybean Index closed at $9.60 Wednesday, priced 77 cents below the March contract and down 40 cents from its highest price in six months.

Wheat:

March Chicago wheat closed up 3/4 cent, not doing much for the day, other than maintaining Wednesday's 13-cent gain. USDA said last week's export sales and shipments of wheat totaled 16.6 mb and 11.9 mb respectively, a neutral showing for the week. Wheat had a little more bullish news this week with concerns of cold temperatures in southern Russia and renewed fighting in Ukraine, but whether those concerns can sustain higher prices remains to be seen. The more bullish development for wheat lately has been in cash prices where basis is steadily strengthening and DTN's National SRW Wheat Index hit its highest price in six months Wednesday. March Chicago wheat is trending higher and has a chance to eventually push above its three-month high at $4.38. DTN's National SRW index closed at $3.96 Wednesday, priced 37 cents below the March contract and at its highest price in six months. DTN's National HRW index closed at $3.47 and down from its highest price in seven months.

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

Follow Todd Hultman on Twitter @ToddHultman1

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