DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was up 1 1/4 cents, May soybeans were down 1 1/2 cents, and May Chicago wheat was up 1 1/2 cents. May soybeans were a little lower Friday, keeping their bearish tone ahead of Friday's Prospective Plantings and Mar. 1 Grain Stocks reports from USDA. Corn and wheat were a little higher, but staying close to their lows for 2017.

Other Markets:

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

Corn:

May corn was up 1 1/4 cents early, not straying from its quiet pattern as traders brace for Friday's reports from USDA. Dow Jones' survey expects to see 91 million acres of corn plantings and 8.55 billion bushels of corn on hand on Mar. 1. I suspect corn stocks will be lower than expected, but don't expect much of a price reaction for corn from these reports. Weather is still by far the most significant factor corn will face in 2017 and so far, the weather has been good for Brazil's second corn crop. May corn remains in a downtrend, but has found short-term support ahead of Friday's reports. DTN's National Corn Index closed at $3.20 Thursday, priced 38 cents below the May contract and near its lowest price in 2017. In outside markets, the June U.S. dollar index is up 0.12 and most commodities are lower.

Soybeans:

May soybeans were down 1 1/2 cents, still leaning bearish as the oilseed with the most on the line in Friday's reports. Dow Jones' survey expects USDA to estimate a record high 88.1 million acres of soybean plantings and 1.68 billion bushels of Mar. 1 soybean supplies. As bearish as record soybean acres are, the bigger concern is that USDA's survey may put out an even higher number. Friday's report also comes at a time when Brazil's record harvest is hitting markets and stealing away U.S. export business. Even after Friday's report, we are still a long way from having good crop estimates for 2017, but as long as the weather remains cooperative, it is hard for soybeans to shake their bearish trend. DTN's National Soybean Index closed at $8.87 Thursday, priced 76 cents below the May contract and at its lowest price in five months.

Wheat:

May Chicago wheat was up 1 1/2 cents early Friday, helped by a hint of commercial buying which has been giving prices support for the past week. Friday's report is expected to peg wheat acres at 46.1 million, the lowest in over a century while wheat stocks are estimated at 1.62 billion bushels. Neither report should have much price impact as there is no argument against the notion that wheat supplies remain burdensome and are not moving very fast. This week's rain in the southwestern U.S. Plains gave winter wheat crops a significant boost and more showers are expected this weekend. May Chicago wheat remains in a downtrend with potential buyers finding no good arguments yet for higher prices. DTN's National SRW index closed at $3.80 Thursday, priced 41 cents below the May contract and up from its lowest price in two months.

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

FollowTodd on Twitter @ToddHultman1

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