DTN Before The Bell Grain Comments

Morning CME Globex Update:

March corn was down 1/2 cent, March soybeans were down 1 3/4 cents, and March Chicago wheat was down 1 1/2 cents. At 8 a.m. CST, USDA announced 5.0 million bushels (128,000 mt) of U.S. corn were sold to Japan for 2016-17. Before the announcement, all three grains were steady to lower early Tuesday with narrow trading ranges seen in corn and wheat. The U.S. dollar index is higher with commentators talking again about a possible rate hike in the Fed's March meeting.

Other Markets:

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

Corn:

At 8 a.m. CST, USDA announced 5.0 million bushels (128,000 mt) of U.S. corn were sold to Japan for 2016-17. Before the announcement, March corn was down a half-cent with a narrow overnight trading range showing little interest from either side of the market. North-central Argentina has more rain in this week's forecast, but those concerns aren't having much price impact as Brazil looks to be on track for a record harvest. Thursday's WASDE report may show a higher estimate of U.S. corn exports while South American crop estimates are likely to show a small net change from more corn in Brazil and less in Argentina. Overall, March corn seems content to maintain its gradual uptrend with help from expectations for a smaller planting in the spring. DTN's National Corn Index closed at $3.27 Monday, priced 36 cents below the March contract and near its highest price in seven months. In outside markets, the March U.S. dollar index is up 0.69 after CNBC reported Philadelphia Federal Reserve President Patrick Harker is open to a rate hike in March, depending on how the economy goes. The U.S. Census Bureau also reported U.S. exports up $5.0 billion in December, more than expected.

Soybeans:

March soybeans were down 1 3/4 cents early Tuesday, pulling back from their overnight attempt to trade higher. There are chances for more rain in north-central Argentina this week that continue to add to crop concerns, but this is the only bullish topic currently being considered as Brazil's harvest is making good progress and has room for a higher crop estimate from USDA in Thursday's WASDE report. Soybean's fundamental concerns include a larger U.S. planting this spring and a possible trade conflict with China, but so far, March soybeans are holding on to a slight uptrend with prices near the middle of their two-month range. DTN's National Soybean Index closed at $9.60 Monday, priced 76 cents below the March contract and down roughly 40 cents from its highest price in six months.

Wheat:

March Chicago wheat was down 1 1/2 cents early, also within a narrow overnight trading range as prices don't have much to trade on at this time of year. DTN's seven-day forecast expects beneficial precipitation in Texas and in the eastern Midwest, but only light amounts for Kansas. Cold weather remains an issue in central and south Russia, but will be difficult to assess until spring. Thursday's WASDE report is not likely to show much change in wheat's estimates which we all know are bearish. The best news for wheat producers lately is that wheat prices are trending slightly higher in early 2017, thanks to a well-deserved correction in the depressed cash market. DTN's National SRW index closed at $3.85 Monday, priced 38 cents below the March contract and down from its highest price in six months.

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

FollowTodd on Twitter@ToddHultman1

(KA)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.