DTN Before The Bell Grain Comments

Morning CME Globex Update:

At 8 a.m. CDT, USDA announced 4.7 million bushels (120,000 metric tons) of U.S. corn were sold to Mexico for 2017-18. Corn and soybeans were starting lower again Tuesday, threatening to post their seventh consecutive lower closes while favorable weather in South America continues to weigh on prices. Wheat was also starting lower after slumping to a new five-week low on Monday.

Other Markets:

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

Corn:

At 8 a.m. CDT, USDA announced 4.7 million bushels (120,000 mt) of U.S. corn were sold to Mexico for 2017-18. May corn was down a half cent after a quiet overnight session. Tuesday morning's weather map has scattered snow in the western Plains and winter storms along the Eastern Coast. DTN's seven-day forecast for South America is a harmless mix of light to moderate showers with some chance for rain delay at Brazil's southern ports. Southern Argentina is mostly dry. Brazil's second corn crop is still months away from harvest and will need helpful rains in April, but so far, the crop estimates are bearish and have turned the short-term trend lower for corn. There were 49 deliveries of March corn early with March U.S. grain futures set to expire early Tuesday. DTN's National Corn Index closed at $3.20 Monday, priced 41 cents below the May contract and at a new five-week low. In outside markets, the June U.S. dollar index is up 0.28 with a rate hike expected at the outcome of Wednesday's Federal Reserve meeting.

Soybeans:

May soybeans were down 6 3/4 cents early, below its lowest price in 2017 as prices continue to feel the bearish pressure of Brazil's progressing harvest, now past 56% complete, according to AgRural. DTN's seven-day forecast continues to expect a broad coverage of light-to-moderate showers, favorable for harvest progress while southern ports may run into some rain delay. We have also seen U.S. soybean export activity slow the past several weeks, but it is unusual that U.S. FOB soybean prices remain close to and competitive with Brazil's prices during Brazil's harvest. May soybeans remain in a downtrend after last week's prices fell to their lowest level in eight weeks. DTN's National Soybean Index closed at $9.27 Monday, priced 79 cents below the May contract and at a new eight-week low. Among March contracts, there were 114 soybeans, 48 meal, and 82 bean oil delivered early Tuesday.

Wheat:

May Chicago wheat was down 1 1/2 cents early Tuesday, still under bearish pressure after prices fell to their lowest close in five weeks on Monday. Wheat started the year on a bullish note and got some help from concerns of dry weather and this year's early spring in February, but without a strong fundamental argument, prices have been unable to hold those early gains. Wheat supplies are still plentiful and the export pace is too slow to expect much more from prices other than a sideways trading range at these cheap levels. DTN's National SRW index closed at $3.86 Monday, priced 44 cents below the May contract and at its lowest in five weeks. Among March contracts, there were 37 deliveries of Chicago wheat early Tuesday.

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

Follow Todd Hultman on Twitter @ToddHultman1

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