DTN Before The Bell Grain Comments

By Darin Newsom
DTN Senior Analyst

Morning CME Globex Update:

May corn was 2 1/2 cents higher, May soybeans were 8 1/4 cents higher, and Kansas City July wheat gained 4 cents. The biggest news over the course of early Wednesday morning was a larger than expected ADP employment number for March of 263,000. This helped rally DJIA futures to solid gains, though large downward revisions of 53,000 and 12,000 were seen for January and February respectively. Grains and energies held overnight gains while metals stayed mostly lower.

Other Markets:

DJIA futures	Higher
U.S. Dollar Index:	Higher
Gold:	Lower
Crude Oil:	Higher

Corn:

Corn contracts closed at or near overnight session highs, indicating continued buying could be seen once Wednesday's session gets under way. With little news expected to be seen, the market looks to have a relatively clear path to extend the short-term uptrend on its daily charts.

Soybeans:

Soybeans look to have turned a bullish short-term corner overnight as contracts posted solid rallies. Though finishing a couple cents off session highs, both old-crop May and New-crop November are in position to establish short-term uptrends on daily charts if continued buying is seen Wednesday. Bullish factors include flooding in Argentina while the big bearish factor continues to be increasing production estimates for Brazil.

Wheat:

Winter wheat contracts held overnight gains through the finish of the overnight session. Kansas City led the way, though it will be interesting to see if commercial buying emerges as the day session progresses. Spreads indicate the overnight rally was driven by noncommercial short-covering.

Darin can be reached at darin.newsom@dtn.com

FollowDarin on Twitter @DarinNewsom

(BAS)

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