DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was up 3 1/2 cents, May soybeans were up 2 3/4 cents, and May Chicago wheat was up 4 1/4 cents. Corn, wheat, and yes, even soybeans were starting higher Monday with light participation in meal and bean oil. Friday's planting estimates from USDA will likely show trading influence again this week as the U.S. heads toward a new crop season.

Other Markets:

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

Corn:

May corn was up 3 1/2 cents early Monday, still showing benefit from USDA's planting estimate of 90.0 million acres, released on Friday. Monday's weather map shows rain in eastern Kansas and the southeastern U.S. with more expected in the eastern Midwest the next few days. Severe weather in the southeastern U.S. will add to fieldwork delays this week. In South America, crop conditions remain favorable with light to moderate showers expected in Mato Grosso, southern Brazil, and Paraguay. Friday's CFTC data showed noncommercial traders turned slightly bearish in corn with 23,190 contracts net short on Mar. 28, just a few days before Friday's bullish reversal. Commercials returned to the long side for the first time in 2017 with 51,865 contracts net long. May corn remains in a gradual downtrend, but Friday's bullish reversal indicates support has likely been found. DTN's National Corn Index closed at $3.27 Friday, priced 38 cents below the May contract and up from its lowest prices in 2017. In outside markets, the June U.S. dollar index is up 0.19 while other commodities are mixed, mostly steady.

Soybeans:

May soybeans were up 2 3/4 cents early, a quiet start to a new month after dropping nearly 90 cents in March. Soybean prices have been weighed down by Brazil's record soybean crop and corresponding increase in Brazil's soybean shipments and Friday's news from USDA added weight to expectations that U.S. soybean plantings will hit a new record high in 2017, some 89.5 million acres USDA said. Friday's CFTC data showed noncommercial traders in soybeans cut back net longs for the sixth consecutive week and are down to 51,854 net longs as of Mar. 28 -- a small bullish position. Commercials are also net long for the first time in a year, a fresh recognition of value as May prices fell to their lowest level since October. Even so, May soybeans remain in a downtrend under bearish pressure. DTN's National Soybean Index closed at $8.71 Friday, priced 75 cents below the May contract and at its lowest price in nearly a year.

Wheat:

May Chicago wheat was up 4 1/4 cents, lightly bolstered by Friday's bullish reversal and USDA's estimates that corn and wheat plantings will be down 8 million acres in 2017. The southwestern U.S. Plains received beneficial moisture last week and light amounts over the weekend which come at a good time for the new winter wheat crop. DTN's seven-day forecast expects mostly light amounts ahead with heavier amounts in the eastern Midwest. Friday's CFTC data showed noncommercials in Chicago wheat still bearish with 89,438 contracts net short as of Mar. 28. Commercials were net long 85,157 contracts which is offering good support for prices in the low-$4s. Friday's bullish reversal likely stopped the downtrend in May Chicago wheat prices, but more sideways trading seems likely with no threat to wheat supplies evident. DTN's National SRW index closed at $3.85 Friday, 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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