DTN Closing Grain Comments

General Comments:

Corn was up 2 1/2 cents in the May contract and up 2 cents in the December. Soybeans were up 8 1/2 cents in the May contract and up 7 cents in the November. Wheat closed unchanged in the May Chicago contract, up 1/4 cent in the May Kansas City and up 1 cent in the May Minneapolis contract.

The June U.S. dollar index is up 0.03 at 100.65. June gold is up $2.80 at $1,277.00 while May silver is up 3 cents and May copper is down $0.0670. The Dow Jones Industrial Average is down 40 at 20,611. May crude oil is down $0.28 at $53.12. May heating oil is up $0.0020 while May RBOB gasoline is down $0.0155 and May natural gas is up $0.035.

Corn:

May corn closed up 2 1/2 cents Wednesday in a session so quiet it felt like the sell side of the market left early for the upcoming three-day weekend. USDA did increase the corn crop estimates for Brazil and Argentina in Tuesday's WASDE report, but they were close enough to expectations to keep selling in corn limited. DTN's seven-day forecast expects light showers to benefit crops in central Brazil while drier weather in Argentina helps ease flooding concerns. Here in the U.S., rain in the central and eastern Midwest will interrupt planting progress at times, but it is hard to call anything a problem yet. The U.S. Energy Information Administration said last week's ethanol production dropped from 1,019,000 to 986,000 barrels per day while inventory dropped from 23.7 to 22.9 million barrels. The drop was likely maintenance related as profit margins are still favorable for corn demand. May corn continues to maintain a sideways trend in the aftermath of USDA's low planting estimate and bullish reversal of March 31. DTN's National Corn Index closed at $3.30 Tuesday, 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 up 0.03 in a quiet day of trading that saw May copper trade down 6.7 cents and May crude oil trade down 29 cents a barrel.

Soybeans:

May soybeans closed up 8 1/2 cents, helped by early commercial buying in both, soybeans and soybean meal, which was possibly related to concerns of recent heavy rains in Argentina. Traders may have been waiting to see USDA's higher crop estimates in Tuesday's WASDE report before reacting to news that northeastern Argentina got hit with heavy rain amounts over the weekend through Monday. However, they were more willing to buy on Wednesday, lifting May soybeans from their lowest prices in a year. DTN's seven-day forecast now looks mostly dry for Argentina, helping to minimize flooding concerns. Here in the U.S., planting those record soybean acres that are expected has not yet begun, generally speaking, and spring showers are giving most of the Midwest a good start on soil moisture. Fundamental factors remain bearish for May soybeans, and Wednesday's new five-month low in spot palm oil prices did not help. However, after five consecutive weeks of lower prices, Wednesday's commercial buying is giving prices a bit of short-term support. DTN's National Soybean Index closed at $8.65 Tuesday, priced 74 cents below the May contract and near its lowest price in a year.

Wheat:

May Chicago wheat finished unchanged in spite of early commercial buying and a lack of selling interest on a day of quiet trading. Wednesday's weather map showed rain in New Mexico and Nebraska, which will catch some winter wheat areas, but the seven-day forecast still looks drier on the western side of the southwestern Plains. This year's winter wheat crop ratings are down from a year ago, but the situation is still far from bullish for prices as most of the world's wheat regions appear to be doing fine so far. USDA's new U.S. ending stocks estimate of 1.159 billion bushels is a bearish weight on prices and gives us the highest ending stocks-to-use ratio in 30 years at 51.8%. With the new winter crop still developing, May Chicago wheat prices continue to trade in a sideways range with support at $4.16 1/2. DTN's National SRW index closed at $3.93 Tuesday, priced 41 cents below the May contract and up from its lowest prices in three months. DTN's National HRW index closed at $3.39 and up from its lowest price in three months.

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

Follow Todd Hultman on Twitter @ToddHultman1

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