DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was up 2 cents, May soybeans were up 6 1/2 cents, and May Chicago wheat was up 5 3/4 cents. After seven consecutive days of lower closes, May soybeans are starting higher Wednesday, helped by light commercial support with corresponding gains also seen in corn and wheat. The U.S. dollar index is modestly lower even though the Fed is expected to raise rates a quarter-percent later Wednesday.

Other Markets:

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

Corn:

May corn was up 2 cents early Wednesday with prices finding a little support near their lowest level in nine weeks. Except for a trace of light snow in eastern Nebraska, Wednesday's weather map is mostly clear in the central U.S. with warmer temperatures in the western Plains that is expected to spread eastward by Friday. The bearish concern for corn is growing in South America and, so far, crop conditions are generally favorable with light to moderate showers expected across Brazil, drier weather in Argentina. In the meantime, U.S. corn demand continues to do well and is keeping May corn above its 2017 low, so far. DTN's National Corn Index closed at $3.21 Tuesday, priced 41 cents below the May contract and near its lowest price in ten weeks. In outside markets, the June U.S. dollar index is down 0.13 with many expecting a quarter-percent rate hike at the end of Wednesday's Federal Reserve meeting. April crude oil is up 89 cents a barrel after the American Petroleum Institute said inventory fell 531,000 barrels last week.

Soybeans:

May soybeans were up 6 1/2 cents early, helped by a 2.4% overnight boost of commercial buying in May palm oil futures. This is also the day when the National Oilseed Processors Association gives its estimate of February's crush estimate, and Dow Jones' survey of analysts expects 148.3 million bushels. Brazil's record soybean crop continues to be the main source of bearish pressure on soybean prices and this week's forecast is favorable for further harvest progress. The one concern about this week's forecast is that rain is expected to temporarily delay loading at Brazil's southern ports. Currently, May soybeans remain in a downtrend, under harvest pressure. DTN's National Soybean Index closed at $9.21 Tuesday, priced 79 cents below the May contract and near its lowest price in three months.

Wheat:

May Chicago wheat was up 5 3/4 cents, an early response of commercial buying after Monday's sell-off took prices to their lowest level in five week. Meanwhile, conditions remain dry in the southwestern Plains and temperatures are expected to possibly hit 90 by Sunday -- a high mark for the ides of March. It is still too early to know how the next winter wheat crop will turn out and, in spite of the current downtrend, prices seem more likely to chop sideways until we can find out more about the first crops of 2017. DTN's National SRW index closed at $3.86 Tuesday, priced 45 cents below the May contract and at its lowest in five weeks.

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

Follow Todd Hultman on Twitter @ToddHultman1

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