DTN Early Word Grains

6:00 a.m. CME Globex:

May corn was down 1/2 cent, May soybeans were down 7 cents, and May Chicago wheat was up 2 1/4 cents.

CME Globex Recap:

May soybeans were under bearish pressure overnight, trading lower again after falling to a new five-month low on Thursday. Corn is slightly lower and winter wheat modestly higher while March's favorable weather continues to weigh on grain prices.

OUTSIDE MARKETS:

The Dow Jones Industrial Average closed down 4.72 points at 20,656.58. The NASDAQ Composite was down 3.95 points at 5,817.69 and the S&P 500 was down 2.49 points at 2,345.96 Thursday. DJIA futures were up 28 points early Friday morning. Asian markets were high with Japan's Nikkei up 177.22 points (0.9%), Hong Kong's Hang Seng up 30.57 points (0.1%), and China's Shanghai Composite up 20.90 points (0.6%). European markets were a little lower Friday with London's FTSE 100 down 1.13 points (-0.02%), Germany's DAX down 6.39 points (-0.05%), and France's CAC 40 down 15.04 points (-0.3%). The U.S. dollar index was down 0.11 at 99.65 while the June euro was up 0.00140 at 1.08445. June 30-year T-Bonds were down 5/32nds at 150'12 while April gold was down $3.40 at $1,243.80. May crude oil was up $0.36 at $48.06 while May Brent crude was up $0.35 at $50.91. Soybeans at the Dalian Exchange were steady to lower and Malaysian palm oil futures are down 0.7%.

	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)	Most short-term trends are pointed down and most futures spreads suggest bearish commercial outlooks.

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MORE COMMODITY-SPECIFIC COMMENTS

CORN May corn is slightly lower with a 1-cent overnight range and rain or snow falling from Colorado to Wisconsin and around the Great Lakes. This weekend's rain is expected to benefit the eastern Midwest and southeastern states with the heaviest amounts targeted over Missouri and Arkansas. In South America, the forecast for the week ahead continues to expect light to moderate showers across Brazil and moderate amounts in northern Argentina. With no significant weather threats in play to challenge estimates of a record corn crop in Brazil, May corn remains under bearish pressure and prices are trending lower.

SOYBEANS May soybeans are down 7 cents early with noncommercial liquidation continuing to reflect a bearish change in investor sentiment toward soybeans. The main source of bearish pressure continues to be Brazil's record harvest and the weather forecast continues to offer no major roadblocks. Soy products are also trending lower with December soybean meal down another $1.50 after Thursday's new two-month low. With both, U.S. and Brazil's soybean prices trending lower, March continues to be a bearish month with no sign of support for falling prices yet.

WHEAT May Chicago wheat is up 2 1/4 cents early Friday with red flag warnings hanging on in Oklahoma and Texas while the southwestern Plains continues to wait for rain in the back half of the seven-day forecast. In spite of the ongoing threat of dry weather in the region, it stands alone so far among the major wheat regions of the world, so it is difficult for traders to get enthused about buying wheat, especially when row crop prices are also falling. May Chicago wheat remains in a downtrend, but is apt to chop sideways until more is known about the next crop of winter wheat.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.17	-$0.02	-$0.39	May	$0.001
Soybeans:	$9.14	-$0.08	-$0.77	May	$0.007
SRW Wheat:	$3.79	-$0.01	-$0.42	May	$0.004
HRW Wheat:	$3.36	-$0.04	-$0.92	May	$0.006
HRS Wheat:	$5.00	$0.03	-$0.41	May	$0.003

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

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