DTN Before The Bell Grain Comments

Grains Quietly Mixed, Rains Continue

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

Morning CME Globex Update:

May corn was down 1 cent, May soybeans were up 1/2 cent, and May Chicago wheat was down 1 1/4 cents. May corn and winter wheat were a little lower early Monday, soybeans a little higher after much of the Midwest received rain over the weekend and has more expected this week. Monday afternoon's Crop Progress report will give the next update of corn planting progress.

Other Markets:

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

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Corn:

May corn was down a penny early Monday with rain in the southern Plains and scattered showers around the eastern Midwest after much of the Midwest received rain over the weekend. Because of early spring rains, planting progress is expected to be behind its usual pace in the eastern Midwest in Monday afternoon's Crop Progress report with more rain expected this week, especially in the eastern Midwest and southeastern states. Friday's CFTC data showed noncommercials slightly bearish in corn with 25,764 contracts net short as of Apr. 11. Commercials were net long 37,142 contracts, a light show of support. May corn continues to trend sideways with the anticipation of record South American crops keeping a lid on prices. DTN's National Corn Index closed at $3.35 Thursday, priced 36 cents below the May contract and near its lowest prices in 2017. In outside markets, the June U.S. dollar index is down 0.33 and June gold is unchanged after North Korea unsuccessfully tested a missile launch over the weekend.

Soybeans:

May soybeans were up a half-cent early, reluctant about trading higher for a fourth consecutive day with ongoing concerns about increased soybean supplies in 2017. After eight weeks of noncommercial liquidation, Friday's CFTC data showed noncommercial traders neutral toward soybeans with 54 contracts net long as of Apr. 11. Commercials were net long 64,173 contracts, showing support for prices near their lowest level in a year. Brazil's record soybean harvest, the anticipation of record high U.S. soybean plantings this spring, early wet planting conditions in the eastern Midwest, and falling palm oil prices are all weighing on soybean prices early in 2017. Last week's outside weekly reversal is a possible clue of support, but so far May soybeans remain in a downtrend. DTN's National Soybean Index closed at $8.82 Thursday, priced 74 cents below the May contract and up from its lowest prices in a year.

Wheat:

May Chicago wheat was down 1 1/4 cents early Monday after parts of the southwestern Plains received rain over the weekend and more is expected in DTN's seven-day forecast. Monday afternoon's Crop Progress report is expected to show slightly higher winter wheat crop ratings as growing conditions have been mostly favorable lately in spite of this year's early spring. Friday's CFTC data showed noncommercials still bearish in Chicago wheat with 85,285 contracts net short as of Apr. 11. Commercials continue to support wheat prices with 82,577 contracts net long. May Chicago wheat prices remain stuck in a sideways range with no serious crop concerns reported yet in 2017. DTN's National SRW index closed at $3.89 Thursday, priced 41 cents below the May contract and near its lowest price in three months.

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

FollowTodd on Twitter @ToddHultman1

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Todd Hultman