DTN Before The Bell Grain Comments
Grains Stay Quiet After Missile Strike
Morning CME Globex Update:
May corn was down 1/4 cent, May soybeans were down 3/4 cent, and May Chicago wheat was down 1/4 cent. Market nerves have eased since news broke on Thursday evening that the U.S. launched missiles at a Syrian airbase, but June gold is staying higher, up $15.60. Grain prices never did show much reaction and are steady to lower early Friday.
Other Markets:
Dow Jones: | Lower |
U.S. Dollar Index: | Lower |
Gold: | Higher |
Crude Oil: | Higher |
P[L1] D[0x0] M[300x250] OOP[F] ADUNIT[] T[]
Corn:
May corn was down a quarter-cent early Friday within a narrow overnight range and largely ignored Thursday evening's news of a U.S. airstrike against Syria. Friday's weather map is mostly clear over the central U.S. with a chance of showers across the northern Plains on Sunday. In South America, the seven-day forecast is mostly dry, except for chance for heavy rain amounts in southern Brazil and Argentina that could become problematic. So far however, May corn prices are showing no concerns, trading at the lower end of their 2017 range. Tuesday's WASDE report is apt to show higher corn crop estimates for Brazil and, possibly Argentina which adds to the bearish outlook for corn prices this summer. DTN's National Corn Index closed at $3.23 Thursday, priced 37 cents below the May contract and up from its lowest prices in 2017. In outside markets, the June U.S. dollar index is down 0.04 after the U.S. Labor Department said non-farm payrolls were up 98,000 in March, much less than expected.
Soybeans:
May soybeans were down 3/4 cent early, still maintaining a bearish tone, but showing signs of slowing this week. Fundamentally, the road ahead clearly looks bearish with Tuesday's WASDE report expected to show another increase in USDA's soybean crop estimate for Brazil and be followed by record U.S. soybean plantings this spring. The bullish possibility of adverse weather shows no sign yet of rearing its head, but there is still time. This week's forecast for heavy rain amounts in southern Brazil and Argentina deserves watching, but is having no price impact at present. May soybean continue to trend lower with additional supplies expected in 2017. DTN's National Soybean Index closed at $8.66 Thursday, priced 75 cents below the May contract and up from its lowest price in nearly a year.
Wheat:
May Chicago wheat was down a quarter-cent, within a narrow overnight range. Prices have not made much progress since Friday's bullish reversal and have even given back part of Friday's gain, but they do remain above the low of $4.16 1/2. Unfortunately for producers, that is the best that can be said for wheat prices at this time as fundamental factors still lean bearish, especially after last week's rain across the southwestern Plains. DTN's seven-day forecast expects more next week in Texas, Oklahoma, and Arkansas. Outside of the U.S., no major problems are being reported in winter wheat regions. With U.S. plantings down in 2017, there is a chance that world ending wheat supplies will be trimmed in 2017, but prices are showing no signs of bullishness at this time. DTN's National SRW index closed at $3.82 Thursday, priced 41 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
(BAS)
Copyright 2017 DTN/The Progressive Farmer. All rights reserved.