DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was up 2 1/4 cents, May soybeans were up 7 1/4 cents, and May Chicago wheat was up 2 1/4 cents. At 8 a.m. CDT, USDA announced 4.4 million bushels (120,000 mt) of U.S. soybeans were sold to unknown destinations for 2016-17. 4.4 million bushels (120,000 mt) of U.S. hard red winter wheat were also sold to Algeria for 2016-17. Corn, soybeans, and wheat were all starting higher Thursday along with most other commodities in the wake of Wednesday's quarter-percent rate hike and one percent drop in the U.S. dollar.

Other Markets:

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

Corn:

May corn was up 2 1/4 cents early Wednesday with a clear day expected across the central U.S. and warmer temperatures in the western Plains. In South America, the forecast continues to look favorable for corn crops with light to moderate showers expected over Brazil and northern Argentina. After reaching its lowest prices in ten weeks, May corn is showing early support and the credit continues to go to this season's increased demand. Early Thursday, USDA said last week's export sales and shipments of corn totaled 49.4 and 62.2 million bushels respectively, another bullish week that has total exports up 66% in 2016-17 from a year ago. Technically, the trend in May corn is down, but thanks to good demand, support is possible at $3.60. DTN's National Corn Index closed at $3.23 Wednesday, 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 0.34, still recognizing caution in Wednesday's Fed comments. April gold is up $30.30.

Soybeans:

At 8 a.m. CDT, USDA announced 4.4 million bushels (120,000 mt) of U.S. soybeans were sold to unknown destinations for 2016-17. May soybeans were up 7 1/4 cents at 7:45 a.m. CDT, helped by early commercial buying responding to prices near their lowest levels in four months and an active pace of shipments. Brazil's forecast continues to be favorable for further harvest progress, but southern port areas may find temporary delays in loading this week due to rain. Brazil's record soybean crop remains a bearish weight on prices and U.S. export sales have slowed a little in recent weeks. USDA said early Thursday that last week's export sales and shipments of soybeans totaled 17.3 and 31.2 million bushels respectively, a bullish combination that shows total shipments up 14% in 2016-17 from a year ago -- well above the pace for USDA's estimated 5% gain in exports. May soybeans remain in a downtrend, but once again appear reluctant to follow through on new lows while soybean demand remains active. DTN's National Soybean Index closed at $9.20 Wednesday, priced 78 cents below the May contract and near its lowest price in three months.

Wheat:

At 8 a.m. CDT, USDA announced 4.4 million bushels (120,000 mt) of U.S. hard red winter wheat were sold to Algeria for 2016-17. May Chicago wheat was up 2 1/4 cents earlier Thursday, continuing to bounce back from Monday's sell-off with help from commercial buying and Wednesday's lower U.S. dollar index. It is looking more like Chicago wheat prices are going to be able to hold a sideways range this month with help from the continuation of mostly dry weather in the southern Plains and warm spring temperatures. World wheat supplies are still abundant and keeping prices at a low level, but we have a lot to learn yet about the next crop of U.S. winter wheat. USDA said last week's export sales and shipments of wheat totaled 9.7 and 22.8 million bushels respectively, a neutral-to-bearish combination that falls short of USDA's estimated pace for 2016-17. Until we know more about the next wheat crop, May Chicago wheat appears to be setting up a sideways range with possible support at $4.25. DTN's National SRW index closed at $3.92 Wednesday, priced 44 cents below the May contract and up from 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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