DTN Early Word Grains

6:00 a.m. CME Globex:

May corn was up 2 cents, May soybeans were up 6 cents, and May Chicago wheat was up 3 3/4 cents.

CME Globex Recap:

Corn, soybeans, and wheat are all starting higher Monday after the southwestern Plains endured a hot, windy weekend. Friday's CFTC data showed reductions in net long positions for row crops, possibly easing some of the bearish pressure.

OUTSIDE MARKETS:

The Dow Jones Industrial Average closed down 19.93 points at 20,914.62. The NASDAQ Composite was up 0.24 points at 5,901.00 and the S&P 500 was down 3.13 points at 2,378.25 Friday. DJIA futures were down 30 points early Monday morning. Asian markets were mixed with Japan's Nikkei down 68.55 points (-0.3%), Hong Kong's Hang Seng up 192.06 points (0.8%), and China's Shanghai Composite up 13.36 points (0.4%). European markets were lower Monday with London's FTSE 100 down 16.70 points (-0.2%), Germany's DAX down 38.11 points (-0.3%), and France's CAC 40 down 18.06 points (-0.4%). The U.S. dollar index was down 0.11 at 100.20 while the June euro was up 0.00195 at 1.08100. June 30-year T-Bonds were up 1/32nd at 148'15 while April gold was up $1.90 at $1,232.10. May crude oil was down $0.62 at $48.69 while Brent crude was down $0.60 at $51.16. Soybeans at the Dalian Exchange are steady to higher overnight and Malaysian palm oil futures are down 0.8%.

	BULL		BEAR
1)	Corn demand continues to do well and U.S. corn remains attractively priced for more export business.	1)	Record corn and soybean production from South America is widely anticipated in early 2017.
2)	U.S. soybean prices are close enough to Brazil's prices that the U.S. continues to see moderate export business.	2)	U.S. wheat supplies remain at their highest in decades.
3)	So far, this year's crop ratings for winter wheat were lower than a year ago in the southwestern Plains and the forecast remains dry.	3)	Outside of dryness in the southwestern Plains, no significant weather threats are anticipated yet for 2017.

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MORE COMMODITY-SPECIFIC COMMENTS

CORN May corn is up 2 cents early, starting higher on the first day of spring after Friday afternoon's CFTC data showed noncommercial traders cut back net longs from 198,890 to 112,805 by Mar. 14 -- a sizeable liquidation as prices fell to their lowest level in eight weeks. The quick response to liquidate plus corn's active demand seems to have helped prices rebound since Mar. 14, but trading much higher may be difficult while Brazil's next corn crop is off to a good start. There is not much rain in this week's forecast for central Brazil, but there is still time before pollination is expected in April. Here in the U.S., Monday morning shows storms in Illinois and Indiana with beneficial rains expected in the central and southern Plains this week. May corn continues to hold above its 2017 low of $3.57 1/2.

SOYBEANS May soybeans are starting up 6 cents early Monday with help from early commercial buying in both soybean meal and bean oil. Noncommercials cut back on their net longs in soybeans for the fourth consecutive week as of Mar. 14, but are still long in 68% of their positions. The bullishness seems misplaced while prices are trending lower and Brazil is roughly two-thirds the way through a record soybean harvest of 108.0 mmt or so. This week's weather will also be favorable for harvest and moving grain as the forecast is mostly dry across central Brazil. The part we still don't know in 2016-17 is demand and USDA's Grain Stocks report on Mar. 31 will give us a big clue on how well the soybeans are moving. May soybeans remain in a downtrend, waiting for harvest pressure to play out.

WHEAT May Chicago wheat is up 3 3/4 cents early after the southwestern Plains just endured a dry, windy weekend with temperatures in the 80s and 90s. DTN's forecast does expect rain in the region this week with milder temperatures and chances for hail, as well. So far, this has not been your typical spring for winter wheat and it does seem like yields will be lower in 2017, but there is still time for more rain to help. Outside of the U.S., the new crop season is still early and no major problems are being cited yet. May Chicago wheat is chopping mostly sideways, holding well above the 2017 low of $4.16 1/4.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.27	$0.01	-$0.41	May	-$0.007
Soybeans:	$9.22	-$0.02	-$0.78	May	-$0.003
SRW Wheat:	$3.93	$0.01	-$0.43	May	$0.003
HRW Wheat:	$3.61	$0.03	-$0.93	May	-$0.001
HRS Wheat:	$5.08	$0.01	-$0.42	May	-$0.003

Todd Hultmancan be reached at todd.hultman@dtn.com

Todd can be followed throughout the day at www.twitter.com\ToddHultman1

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