DTN Before The Bell Grain Comments

Morning CME Globex Update:

May corn was up 3/4 cent, May soybeans were up 4 1/2 cents, and May Chicago wheat was down 1/4 cent. Soybeans were a little higher early Wednesday, but a bearish mood continues to hang over grain and oilseed prices with more supplies on the way from South America. Corn planting remains a concern in early 2017 with Wednesday morning's rain in the northwestern Plains.

Other Markets:

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

Corn:

May corn was up 3/4 cent early Wednesday with moderate to heavy showers falling from South Dakota to southern Iowa, moving slowly eastward. Most of this week's rains are regionally isolated and the next wave is expected across the southern Plains Friday, but there will be other areas where planting will be able to sneak in between the intermittent showers. Meanwhile, beneficial rain remains in the forecast for central Brazil while Argentina is drier. U.S. corn exports remain active while Brazil's next crop is growing, but the anticipation of record production from down south is keeping May corn prices limited within a sideways range. DTN's National Corn Index closed at $3.26 Tuesday, priced 36 cents below the May contract and down from its highest price in five weeks. In outside markets, the June U.S. dollar index is up 0.16 with France's election set for Sunday.

Soybeans:

May soybeans were up 4 1/2 cents, helped by early and light commercial buying in soybean meal. Wednesday's rains are expected to move eastward, across the northern Plains and will again make corn planting difficult and add to concerns that this year's wet spring will translate to more soybean acres later. Soybeans are off to a bearish start in 2017 and so far, there is not much happening to disrupt that trend. Last week's outside weekly reversal offered a possible sign of support near $9.30 just as commercials have turned net long, but it is still difficult to see much bullish hope here after Brazil's record harvest and while USDA anticipates a U.S. record planting of 89.5 million acres. For now, May soybeans remain in a downtrend, under bearish pressure. DTN's National Soybean Index closed at $8.74 Tuesday, priced 72 cents below the May contract and up from its lowest prices in a year.

Wheat:

May Chicago wheat was down a quarter-cent, keeping a low profile since late-March with little happening to shake up prices. The southwestern Plains are expected to be mostly dry for a couple days before rain returns to Kansas and Oklahoma on Friday. Overall, the winter wheat crop is doing well, but is expected to have a lower yield from a year ago. USDA's International Crop Summary noted dryness in western Europe and favorable conditions in Ukraine and Russia. With no serious threats happening yet, May Chicago wheat continues to trade sideways with support from commercial buying. DTN's National SRW index closed at $3.82 Tuesday, priced 40 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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