DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was unchanged, May soybeans were up 1 1/4 cents, and May Chicago wheat was up 1/4 cent. Grains were off to a quiet start Thursday, even after USDA's weekly export sales report showed another bullish week of corn and soybean business. This week's rain has pushed east of the Mississippi River and will be followed by a few days of clearer conditions.

Other Markets:

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

Corn:

May corn was unchanged early Thursday, starting again with a quiet overnight range. Thursday's rains are scattered east of the Mississippi river with mostly clear conditions and warmer temperatures due across the central U.S. the next few days. Early Thursday, USDA said last week's export sales and shipments of corn totaled 44.8 and 62.9 million bushels respectively, bullish amounts that show no concern of South American competition yet. Since Friday's planting estimate and bullish reversal, May corn is holding sideways with support at $3.54 1/4. The anticipation of record corn crops from South America remain a bearish concern even while a forecast of heavy rain could be troublesome this week in central Argentina. DTN's National Corn Index closed at $3.27 Wednesday, 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 trading quiet, up 0.08 after European Central Bank (ECB) President Draghi expressed confidence that ECB policies were helping the European economy.

Soybeans:

May soybeans were up 1 1/4 cents, trying for a second day higher after experiencing consistent selling for a month and a half. Brazil's soybean crop estimates continue to grow ahead of next week's WASDE report, but there is also a concern about heavy rain in this week's forecast for central Argentina and that is likely giving soybean bears reason for pause. Even though both, Brazil and U.S. soybean prices have fallen sharply, they remain competitive and that is helping U.S. export business. Early Thursday, USDA said last week's export sales and shipments of soybeans totaled 17.7 and 27.7 million bushels respectively, a bullish combination that has total shipments up 16% in 2016-17 from a year ago. For now, May soybeans remain in a downtrend, under obvious bearish pressure. DTN's National Soybean Index closed at $8.69 Wednesday, priced 76 cents below the May contract and up from its lowest price in nearly a year.

Wheat:

May Chicago wheat was up a quarter-cent early, keeping a narrow, sideways trading range since Friday's USDA report estimated the lowest plantings in over a century. The seven-day forecast for the southwestern Plains is dry the next few days with warmer temperatures, followed by another chance for rain early next week. It is possible that winter wheat crop ratings are improving again this week, showing more benefit from last week's rain. Outside of the U.S., there continues to be no major crop threats yet. USDA said early Thursday that last week's export sales and shipments of wheat totaled 20.9 and 20.8 million bushels respectively, a neutral to bearish combination that is not easing the burden of excessive U.S. wheat supplies. May Chicago wheat appears content to trade sideways after Friday's reversal, but also remains under bearish pressure with plentiful U.S. supplies. DTN's National SRW index closed at $3.88 Wednesday, priced 42 cents below the May contract and up from its lowest price in three months.

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

FollowTodd on Twitter @ToddHultman1

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