DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was up 1 1/4 cents, May soybeans were down 2 cents, and May Chicago wheat was down 1 3/4 cents. Soybeans and wheat are modestly lower early while corn is steady to higher, but all three remain under bearish pressure after last week's selling. The U.S. dollar index is trading at a new four-month low, but other than gold, most commodities are lower.

Other Markets:

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

Corn:

May corn was up 1 1/4 cents early Monday within a 1-cent overnight range. Monday morning's weather map shows rain around Missouri and Arkansas -- two states that have been dry over the winter. This week's forecast for South America expects light to moderate rains to benefit corn in central Brazil while southern Brazil is drier. Moderate rains are expected in Argentina. The anticipation of Brazil's record corn crop continues to keep prices under bearish pressure and noncommercial traders have cut back on their net longs. Friday's CFTC data showed noncommercials in corn with 63,649 net longs as of Mar. 21, down 49,156 from the previous week. May corn is trending lower, probing for support near its lowest prices in 2017. DTN's National Corn Index closed at $3.17 Friday, priced 39 cents below the May contract and at its lowest price in 2017. In outside markets, the June U.S. dollar index is down 0.69 at its lowest prices in four months -- a bearish change that should help support commodity prices.

Soybeans:

May soybeans were down 2 cents, still making new five-month lows while prices feel the bearish weight of Brazil's record soybean harvest. It also isn't helping soybean prices that May soybean oil is starting down 0.29 after palm oil futures dropped 2.1% overnight. This week's forecast is mostly dry in southern Brazil, favorable for more harvest progress where the work is still going on. Friday's CFTC data showed noncommercial traders less bullish in soybeans with 70,957 contracts net long on Mar. 21, down 34,521 from the previous week. It is the smallest holding of net longs since April of last year. May soybeans continue to trend lower, under harvest pressure with no sign of support yet. DTN's National Soybean Index closed at $8.99 Friday, priced 77 cents below the May contract and at its lowest price in five months.

Wheat:

May Chicago wheat was down 1 3/4 cents early, but still holding above its 2017 low so far. The southwestern Plains are expected to get one to three inches of rain the next few days, amounts that are much-needed after a mostly dry winter. This year's early warm temperatures in the region appear here to stay with no significant cold in the seven-day forecast. With rain on the way and prices trending lower, Friday's CFTC data showed noncommercial traders in Chicago wheat holding 72,815 contracts net short on Mar. 21, the biggest net short position in 2017. Commercials are net long 68,471 contracts, offering support for prices near their lowest level in over two months. DTN's National SRW index closed at $3.82 Friday, priced 43 cents below the May contract and near its lowest in seven weeks.

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

FollowTodd on Twitter @ToddHultman1

(BAS)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.