DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was up 1/4 cent, May soybeans were up 6 cents, and May Chicago wheat was down 1 cent. Soybeans are starting higher Wednesday with help from early commercial buying in soybean meal, possibly related to this week's heavy rains in Argentina. Otherwise, corn and wheat are off to a quiet start with little influence from Wednesday's bearish USDA estimates.

Other Markets:

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

Corn:

May corn was up a quarter-cent early Wednesday, still not showing much reaction to Tuesday's higher crop estimates from USDA. Wednesday morning's weather map is mostly clear across the central U.S. with showers expected to form from western Texas to Iowa the next few days. Other areas will be dodging spring showers in the week ahead, but should be able to make some planting progress. May corn prices continue to find support above the March low of $3.54 1/4, but are likely to stay sideways with Brazil's record corn crop doing well, so far. DTN's National Corn Index closed at $3.30 Tuesday, 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 mostly higher.

Soybeans:

May soybeans were up 6 cents early, getting an unexpected lift after USDA increased its soybean crop estimates for Brazil and Argentina in Tuesday's WASDE report. This seems to be a case of sell the anticipation and buy the fact as the South American crop increases were well-discussed ahead of USDA's report. Parts of northeastern Argentina received heavy rain the past few days which may be behind some of Wednesday morning's commercial buying in soybean meal. This week's forecast is mostly dry for both, Brazil and Argentina. In spite of Wednesday's bounce, May soybeans remain in a downtrend with bearish pressure from Brazil's record crop and the anticipation of record soybean plantings coming to the U.S. Falling palm oil prices are also a bearish influence on soybeans, ending at a new five-month low early Wednesday. DTN's National Soybean Index closed at $8.65 Tuesday, priced 74 cents below the May contract and near its lowest price in nearly a year.

Wheat:

May Chicago wheat was down a penny early, off to a quiet start with no major threats in view. Rain is expected to develop in western Texas on Wednesday and stretch northeast into Iowa, but will miss much of the western half of the southwestern Plains. Soft red winter wheat in the eastern Midwest, on the other hand, is getting plenty of precipitation and has more expected in this week's forecast. Outside of the U.S., USDA's International Crop Summary noted dryness in western Europe, but shows no significant problems in the world's major wheat regions. Fundamentally, there is no bullish argument for wheat, but we are in the growing season when conditions can change. Technically, May Chicago wheat continues to trade sideways, above support at $4.16 1/2. DTN's National SRW index closed at $3.93 Tuesday, 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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