DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was down 1 1/2 cents, May soybeans were down 3 cents, and May Chicago wheat was down 2 1/2 cents. At 8 a.m. CST, USDA announced 122,000 metric tons of U.S. soybean meal was sold to Philippines for 2016-17. Corn and soybeans were lower again early Wednesday, pressured by generally favorable conditions for South America's corn crops and soybean harvest progress. The March U.S. dollar index is higher with a possible rate hike coming next week.

Other Markets:

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

Corn:

May corn was down 1 1/2 cents early Wednesday with little change in the forecasts for either the U.S. or South America. Red flag warnings remain in the western Plains, but winds are starting lighter in the south, stronger in the northern Midwest. Corn demand has lifted prices higher in early 2017 and U.S. corn is still cheaper than spot prices in Brazil, but the bullish influence may be fading as Brazil remains on track for a record corn crop in the next few months. May corn remains in a gradual uptrend, but is showing signs of losing momentum. There were 49 deliveries of March corn early Wednesday. DTN's National Corn Index closed at $3.35 Tuesday, priced 41 cents below the May contract and near its highest price in eight months. In outside markets, the March U.S. dollar index is up 0.22 after ADP estimated 298,000 new private sector jobs in February, much more than expected, reported RTTNews.com.

Soybeans:

At 8 a.m. CST, USDA announced 122,000 metric tons of U.S. soybean meal was sold to Philippines for 2016-17. May soybeans were down 3 cents at the 7:45 a.m. CST break, continuing to sag under the bearish pressure of Brazil's advancing harvest. Brazil's harvest has likely reached the half-way mark by now and should make good progress this week with mostly dry weather expected across central Brazil. Heavier rain amounts will cover the southern end of Brazil, temporarily delaying harvest activity there. Ever since concerns of flooding emerged in Argentina in mid-January, soybean prices have been sliding gradually lower and are now close to testing the support of last week's low at $10.17. DTN's National Soybean Index closed at $9.45 Tuesday, priced 80 cents below the May contract and also within a sideways range. Among March contracts, there were 238 soybeans, 234 meal, and 816 bean oil delivered early Wednesday.

Wheat:

May Chicago wheat was down 2 1/2 cents early with lighter winds in the southwestern Plains after Tuesday's wildfires inflicted widespread damage. Red flag warnings still hang over the region with the forecast remaining dry for the next few days. There are chances for rain this weekend in eastern Oklahoma, but the western side of the southwestern Plains is expected to stay dangerously dry. Thursday's WASDE report will remind us that U.S. wheat supplies are still abundant, but May Chicago and K.C. wheat remain in uptrends with concerns of early spring and dry weather. DTN's National SRW index closed at $4.11 Tuesday, priced 45 cents below the May contract and near its highest price in eight months. Among March contracts, there were 229 deliveries of Chicago, 134 deliveries of K.C., and 289 deliveries of Minneapolis wheat early Wednesday.

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

Follow Todd Hultman on Twitter @ToddHultman1

(BAS)

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