DTN Early Word Grains

6:00 a.m. CME Globex:

May corn was down 1 1/4 cents, May soybeans were down 1 1/2 cents, and May Chicago wheat was down 1 1/4 cents.

CME Globex Recap:

Corn, soybeans, and wheat are all a little lower early after a quiet overnight session. South America's crops remain an ongoing source of bearish pressure as does this week's forecast for rain across the central U.S.

OUTSIDE MARKETS:

The Dow Jones Industrial Average closed down 8.76 points at 20,905.86. The NASDAQ Composite was up 0.53 points at 5,901.53 and the S&P 500 was down 4.78 points at 2,373.47 Monday. DJIA futures were up 16 points early Tuesday morning. Asian markets were mixed with Japan's Nikkei down 65.71 points (-0.3%), Hong Kong's Hang Seng up 91.13 points (0.4%), and China's Shanghai Composite up 10.80 points (0.3%). European markets were also mixed Tuesday with London's FTSE 100 down 3.39 points (-0.05%), Germany's DAX down 6.78 points (-0.1%), and France's CAC 40 up 12.97 points (0.3%). The U.S. dollar index was down 0.48 at 99.88 while the June euro was up 0.00620 at 1.08430. June 30-year T-Bonds were down 9/32nds at 148'23 while April gold was down $2.80 at $1,231.20. May crude oil was up $0.40 at $49.31 while Brent crude was up $0.40 at $52.02. Soybeans at the Dalian Exchange were steady to lower and Malaysian palm oil futures are up 1.0%.

	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, but there is rain in this week's forecast.	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 down 1 1/4 cents early Tuesday after another night of quiet trading. Prices continue to trade near their lowest levels in 2017 with bearish concerns about the potential of Brazil's second crop. This week's forecast is mostly dry across Brazil and not a concern, but rain will be needed next month during pollination time. Meanwhile, the U.S. continues to take advantage of increased export business while prices remain in the U.S.'s favor. In outside markets, the U.S. dollar index is down 0.48 and the euro higher as Bloomberg.com reported that it is looking less likely that France's election will go to the anti-EU candidate, Marine Le Pen. May corn remains under bearish pressure, but is holding above the support of the 2017 low at $3.57 1/2.

SOYBEANS May soybeans are down 1 1/2 cents, showing no sign yet of shaking off Brazil's bearish influence as this week's weather forecast continues to favor further harvest progress. The odd thing about this year's harvest is that U.S. prices are staying close to Brazil's so the U.S. continues to see export business come its way. While Brazil's record crop of 108.0 mmt is clearly bearish for prices, we should also note that prices are still near $10.00 and the unsung hero of support is likely increased world demand. USDA's quarterly grain stocks report on Mar. 31 will provide the next clue of how that demand has affected the movement of U.S. soybean supplies.

WHEAT May Chicago wheat is down 1 1/4 cents, testing the lower end of its prices over the past ten weeks. Dry weather in the southwestern Plains has been a concern all winter and now there is finally a chance for rain in this week's forecast. We can't say that all will be fine from here, but the forecast does have bearish effect, at least this week. There is also plenty of time for more rain to help the winter wheat crop this spring, so with a large carryover expected, May Chicago wheat prices remain under bearish pressure until proven otherwise.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.23	-$0.04	-$0.40	May	$0.004
Soybeans:	$9.21	-$0.01	-$0.78	May	-$0.001
SRW Wheat:	$3.87	-$0.06	-$0.44	May	-$0.002
HRW Wheat:	$3.53	-$0.08	-$0.92	May	$0.003
HRS Wheat:	$5.07	-$0.01	-$0.41	May	$0.002

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

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

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