DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was up 1 3/4 cents, May soybeans were up 1 1/4 cents, and May Chicago wheat was up 1 3/4 cents. Corn, soybeans, and wheat were all a little higher early Wednesday, having survived Tuesday's higher closes without dramatic response. Rain continues to fall over the southern Plains, reaching as far north as Iowa.

Other Markets:

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

Corn:

May corn was up 1 3/4 cents early Wednesday as the latest run of selling seems to have backed off in front of Friday's USDA reports. Rain continues to fall over the driest areas of the southwestern U.S. Plains and is moving slowly eastward. DTN's seven-day forecast has rain for all Midwestern states, except the most northern few. In South America, light to moderate showers in Mato Grosso are expected to keep the second corn crop in good condition. The anticipation of Brazil's record corn crop is keeping prices under pressure, but waiting for Friday's USDA reports have given prices a break from their gradual downtrend. DTN's National Corn Index closed at $3.19 Tuesday, priced 39 cents below the May contract and at its lowest price in 2017. In outside markets, the June U.S. dollar index is up 0.26 early, continuing to rebound higher after trading at a new four-month low on Monday. Softs and metals are lower early while energies are steady to higher.

Soybeans:

May soybeans were up 1 1/4 cents early, finding a little support this week in front of Friday's Prospective Plantings and Mar. 1 Grain Stocks reports. The grain stocks report will likely show record soybean demand in the first half of 2016-17, but higher plantings in 2017 should keep prices from celebrating higher. At the same time, Brazil's record soybean harvest continues to make its way to market and this week's forecast is mostly dry in southern Brazil, favorable for further progress and ship loading. May soybeans remains in a downtrend and may have found a safe place for short-term support before Friday's reports are released. DTN's National Soybean Index closed at $8.96 Tuesday, priced 76 cents below the May contract and at its lowest price in five months.

Wheat:

May Chicago wheat was up 1 3/4 cents early -- a small bullish surprise while rain continues to fall over the driest areas of the southwestern Plains. In fairness, the rains were long-anticipated and accounted for much of last week's price decline. While wheat prices appear to have found short-term support for now, the overall situation remains clearly bearish with no significant weather threats in Tuesday's International Crop Summary from USDA and little hope of bullish news in Friday's USDA reports. The most bullish thing that can be said for wheat this year is that U.S. plantings will be down, but prices will need help from adverse weather for any significant rally. May Chicago wheat remains in a downtrend. DTN's National SRW index closed at $3.83 Tuesday, priced 42 cents below the May contract and up from its lowest in seven weeks.

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

FollowTodd on Twitter @ToddHultman1

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