DTN Closing Grain Comments

General Comments:

Corn was up 4 1/2 cents in the March contract and up 3 1/4 cents in the December. Soybeans were up 16 1/4 cents in the March contract and up 11 1/4 cents in the November. Wheat closed up 5 1/4 cents in the March Chicago contract, up 4 cents in the March Kansas City, and down 1/4 cent in the March Minneapolis contract.

The March U.S. dollar index is down 0.07 at 101.16. April gold is up $7.20 at $1,232.60 while March silver is up 8 cents and March copper is up $0.0050. The Dow Jones Industrial Average is up 90 at 20,595. March crude oil is up $0.03 at $53.23. March heating oil is down $0.0071 while March RBOB gasoline is up $0.0035 and March natural gas is up $0.023.

Corn:

March corn closed up 4 1/2 cents Wednesday, setting a new seven-month high in the process. Corn's current up-trend runs counter to fundamental concerns of bigger crops expected from South America this summer and has a few things going for it, such as time. Importers looking for cheap FOB corn prices currently find the better bargain in the U.S. by over 30 cents a bushel compared to Brazil. It helps U.S. exports that Brazil's central bank intervened Tuesday with the result that the real is now trading at its highest price in 17 months. Also, Brazil's corn price has been trading higher since Jan. 30 -- a move that challenges the "everything's fine" crop scenario. In spite of expectations for bigger crops down south, March corn continues to trend higher with more influence from this season's increased demand. DTN's National Corn Index closed at $3.37 Tuesday, priced 37 cents below the March contract and near its highest price in seven months. In outside markets, the March U.S. dollar index is down 0.07, not showing concern over Wednesday's report of consumer prices. The U.S. Labor Department said consumer prices increased 2.5% in January from a year ago, thanks to a jump in energy prices.

Soybeans:

March soybeans closed up 16 1/4 cents Wednesday, lifted by commercial buying and a bullish report of January's soybean crush from the National Oilseed Processors Association (NOPA). NOPA said 160.62 million bushels of U.S. soybeans were crushed last month, up 6.7% from a year ago and more than was expected. Soybean oil stocks finished the month at 1.62 billion pounds, up 6.8% from a year ago and also more than expected. The report's suggestion of increased demand for meal showed up especially bullish in December soybean meal where prices were up $5.70 to their highest close on record. In spite of all the talk of Brazil's soybean harvest doing well, demand for soybeans remains the dominant influence and is allowing March soybeans to keep trending higher. DTN's National Soybean Index closed at $9.71 Tuesday, priced 74 cents below the March contract and down from its highest price in six months.

Wheat:

March Chicago wheat closed up 5 1/4 cents at a new five-month high, pulled up by corn, but also benefiting from commercial buying and concerns about a return of warm temperatures to the southwestern Plains here in the ides of February. It is possible that winter will end early for winter wheat this year and never look back, but that seems like quite a gamble this early on the calendar. On Thursday, the Climate Prediction Center will try to help us guess with a forecast for March. As nice as it has been for wheat producers to see prices correct back from December's lows, there is still plenty of wheat around the world to contend with, including Australia's new 35.0 mmt estimate from Tuesday. So far however, March Chicago wheat continues to trend higher. DTN's National SRW index closed at $4.13 Tuesday, priced 37 cents below the March contract and near its highest price in seven months. DTN's National HRW index closed at $3.74 and was near 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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