DTN Closing Grain Comments

General Comments:

Corn was up 1 1/4 cents in the May contract and up 3/4 cent in the December. Soybeans were down 6 3/4 cents in the May contract and down 7 3/4 cents in the November. Wheat closed unchanged in the May Chicago contract, down 1/4 cent in the May Kansas City, and up 1 1/4 cents in the May Minneapolis contract.

The June U.S. dollar index is up 0.31 at 101.50. April gold is unchanged at $1,203.10 while May silver is down 4 cents and May copper is up $0.0210. The Dow Jones Industrial Average is down 52 at 20,829. April crude oil is down $0.69 at $47.71. April heating oil is down $0.0112 while April RBOB gasoline is down $0.0006 and April natural gas is down $0.105.

Corn:

May corn closed up 1 1/4 cents Tuesday, staying within a narrow, 4 1/2 cent range as prices sat near their lowest levels of 2017. Corn's most bearish challenge is the 5.1 billion bushels USDA estimates is being grown in Brazil and Argentina, but we are still months away from Brazil's second harvest and weather will need to cooperate in April. In the meantime, U.S. FOB corn prices are roughly 40 cents a bushel cheaper price than those in Brazil, and so the U.S. continues to do more business than USDA's 2.225 billion bushel export estimate suggests. USDA also reported early Tuesday 4.7 million bushels (120,000 metric tons) of U.S. corn were sold to Mexico for 2017-18. Since Friday's new eight-week low, the short-term trend remains down in May corn while traders monitors Brazil's next crop. 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. March grain futures expired at noon CDT on Tuesday.

Soybeans:

May soybeans were down 6 3/4 cents Tuesday, closing below $10 for the first time in four months as prices continue to feel the weight of Brazil's record harvest. The private firm, AgRural, estimated Brazil's harvest at 56% complete on Friday and this week's forecast continues to expect favorable conditions for further harvest progress. Brazil's southern ports may experience some rain delay, but most of the country is expecting light to moderate rain amounts. With no weather threat imminent and U.S. soybean exports slowing, May soybeans remain in a downtrend. DTN's National Soybean Index closed at $9.27 Monday, priced 79 cents below the May contract and at a new eight-week low.

Wheat:

May Chicago wheat ended unchanged Tuesday, narrowly avoiding a sixth consecutive lower close. Conditions are still dry in the southwestern Plains with temperatures expected back in the 80s on Thursday. Monday's reports from state NASS offices showed winter wheat crop ratings in Kansas, Oklahoma, and Texas at 40%, 42% and 35% good to excellent, respectively -- all three down from a year ago. There is still time for rain to help this crop, but so far, not much is expected the next 10 days. After Monday's new five-week low, the trend in May Chicago wheat has turned lower, but a sideways trading range seems more likely until more is known about the next winter crop. DTN's National SRW index closed at $3.86 Monday, priced 44 cents below the May contract and near its lowest close in five weeks. DTN's National HRW index closed at $3.40 and was near its lowest close in five weeks.

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

Follow Todd Hultman on Twitter @ToddHultman1

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