DTN Closing Grain Comments

General Comments:

Corn was down 2 cents in the May contract and down 2 cents in the December. Soybeans were down 8 3/4 cents in the May contract and down 7 1/2 cents in the November. Wheat closed down 1 1/4 cents in the May Chicago contract, down 4 1/2 cents in the May Kansas City and up 3 cents in the May Minneapolis contract.

The June U.S. dollar index is up 0.14 at 99.60. April gold is up $4.80 at $1,244.90 while May silver is up 2 cents and May copper is up $0.0215. The Dow Jones Industrial Average is up 59 at 20,720. May crude oil is down 0.34 at $47.70. May heating oil is down $0.0065 while May RBOB gasoline is down $0.0097 and May natural gas is up $0.055.

Corn:

May corn was down 2 cents Thursday, posting its lowest close in 2017. While the trading range was only 3 1/2 cents wide, there seemed to be no threat of prices closing higher. Good weather in South America and rain in the forecast for the central and southern U.S. Plains has kept a bearish damper on prices all week. The most bullish factor for corn prices remains demand, but it is becoming more difficult for prices to show appreciation, and futures spreads show no bullish inclinations among commercials. USDA said early Thursday, last week's export sales and shipments of corn totaled 53.0 million bushels and 54.4 mb respectively, bullish amounts that have total exports up 65% in 2016-17 from a year ago. May corn remains in a downtrend with no sign of support yet. DTN's National Corn Index closed at $3.19 Wednesday, priced 39 cents below the May contract and near its lowest price in 2017. In outside markets, the June U.S. dollar index is quiet, trading up 0.14 while commodities other than grains are mixed.

Soybeans:

May soybeans closed down 8 3/4 cents at a new five-month low while market weather factors remain bearish. Central and southern Brazil continue to show chances for light to moderate showers, but not enough to disrupt the soybean harvest in a significant way and that harvest should be past the two-thirds mark by now. While Brazil's soybean prices continue to make new lows, expected this time of year, they are less than a dime below U.S. prices, so U.S. demand remains somewhat active. USDA said early Thursday last week's export sales and shipments of soybeans totaled 27.1 and 21.2 mb respectively, a bullish combination that kept total exports up 14% in 2016-17 from a year ago. If we include outstanding sales, the totals for 2016-17 are up 24% from a year ago. So far, May soybeans remain in a downtrend with no sign yet of easing harvest pressure. DTN's National Soybean Index closed at $9.22 Wednesday, priced 77 cents below the May contract and near its lowest price in four months.

Wheat:

May Chicago wheat ended down 1 1/4 cents after a quiet day of trading, but like corn, showed little threat of prices going higher. Dry conditions in the southwestern Plains are currently the only significant weather threat among the world's major wheat regions, but even that is offering no help to wheat prices as there looks to be plenty of rain coming the next seven days and possibly longer. It is still early in 2017, but without a weather threat, wheat prices will be in for another long bearish year as demand is not exactly on fire. Earlier Thursday, USDA said last week's export sales and shipments of wheat totaled 15.4 mb and 23.8 mb, a neutral-to-bearish combination that still has total exports below USDA's estimated pace for 2016-17. May Chicago wheat remains in a downtrend with no sign of support yet. DTN's National SRW index closed at $3.80 Wednesday, priced 42 cents below the May contract and near its lowest price in seven weeks. DTN's National HRW index closed at $3.40 and also near its lowest price in seven weeks.

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

Follow Todd Hultman on Twitter @ToddHultman1

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