DTN Before The Bell Grain Comments

Corn, Soybeans Start A Little Higher

Todd Hultman
By  Todd Hultman , DTN Lead Analyst
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(DTN photo by Greg Horstmeier)

Morning CME Globex Update:

May corn was up 2 1/4 cents, May soybeans were up 5 cents, and May Chicago wheat was up 3/4 cent. At 8 a.m. CDT, USDA announced 4.0 million bushels (101,600 mt) of U.S. corn were sold to unknown destinations for 2016-17. May corn and soybeans were a little higher Monday, helped by early commercial buying and with some concern of heavy rains over the weekend in southern Brazil and Argentina.

Other Markets:

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

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Corn:

May corn was up 2 1/4 cents, showing a slight rebound from Friday's lows with help from commercial buying after heavy rains hit part of Argentina over the weekend. Here in the U.S., more rain is expected in the latter half of the seven-day forecast from Texas to the Great Lakes with the heaviest amounts expected from Missouri to Indiana. Friday's CFTC data showed noncommercial traders slightly bearish in corn with 14,541 contracts net short as of Apr. 4. Commercials were net long for a second week, holding 31,997 contracts. Technically, May corn is showing signs of support and should be able to hold sideways as we head toward planting season. DTN's National Corn Index closed at $3.22 Friday, priced 37 cents below the May contract and near its lowest prices in 2017. In outside markets, the June U.S. dollar index is quiet while other commodities are mixed. June gold is down $6.90 and Mary crude oil is up 55 cents.

Soybeans:

May soybeans were up a nickel early Monday after heavy rains hit southern Brazil and Argentina over the weekend, likely causing problems for harvest. Here in the U.S., soybean planting has been confined to the southern states as soil temperatures gradually warm. This week's rain will mainly benefit the central Plains and eastern Midwest, setting up good planting conditions so far. Friday's CFTC data showed the seventh straight week of noncommercial liquidation in soybeans with traders now holding 22,157 net longs, down from 51,665 the previous week. Commercials are now net long 42,924 soybean contracts, the most since March 2016. Tuesday's WASDE report is expected to show higher corn and soybean crop estimates for Brazil, reinforcing bearish concerns for both. May soybeans remain in a downtrend. DTN's National Soybean Index closed at $8.67 Friday, priced 75 cents below the May contract and near its lowest price in nearly a year.

Wheat:

May Chicago wheat was up 3/4 cent early, a quiet start with slight improvement possible in USDA's Monday afternoon crop ratings. This week's forecast is familiar for the southwestern Plains as the better rain chances lean to the eastern side of the region. Friday's CFTC data showed noncommercials still bearish in Chicago wheat with 86,931 contracts net short as of Apr. 4. Commercials remain net long 81,155 contracts. The firm commercial support suggests that prices should be able to hold support near current levels, but there is no bullish argument for significantly higher prices at this time. DTN's National SRW index closed at $3.83 Thursday, priced 41 cents below the May contract and near its lowest price in three months.

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

FollowTodd on Twitter @ToddHultman1

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Todd Hultman