DTN Early Word Grains

6:00 a.m. CME Globex:

July corn was down 1 3/4 cents, July soybeans were down 4 1/2 cents, and July Chicago wheat was down 1 3/4 cents.

CME Globex Recap:

July corn and soybeans were modestly lower early Tuesday after USDA reported 17% of corn and 6% of soybeans planted. Chicago wheat was also a little lower with a slight increase in Monday's winter wheat crop rating.

OUTSIDE MARKETS:

The Dow Jones Industrial Average closed up 216.13 points at 20,763.89. The NASDAQ Composite was up 73.30 points at 5,983.82 and the S&P 500 was up 25.46 points at 2,374.15 Monday. DJIA futures were up 53 points early Tuesday morning. Asian markets were higher with Japan's Nikkei up 203.45 points (1.1%), Hong Kong's Hang Seng up 316.46 points (1.3%), and China's Shanghai Composite up 5.04 points (0.2%). European markets were mostly higher Tuesday with London's FTSE 100 up 8.67 points (0.1%), Germany's DAX down 3.20 points (-0.03%), and France's CAC 40 up 7.09 points (0.1%). The U.S. dollar index was down 0.09 at 98.95 while the June euro was up 0.00370 at 1.09235. June 30-year T-Bonds were down 19/32nds at 152'27 while June gold was down $5.30 at $1,272.20. June crude oil was up 0.10 at $49.33 while June Brent crude was up $0.05 at $51.65. Soybeans at the Dalian Exchange were lower overnight and Malaysian palm oil futures are down 1.7%.

	BULL		BEAR
1)	July corn continues to hold above its March low of $3.61 3/4 while planting remains a challenge.	1)	So far, growing conditions have been good for Brazil's second corn crop and there is more beneficial rain in the forecast.
2)	July soybeans continue to trade above the low of last week's outside reversal with fresh commercial support.	2)	Large supplies of freshly harvested soybeans in Brazil continue to hang over the market's head.
3)	102,882 noncommercial net shorts near Chicago wheat's lowest prices in 10 years is at risk for short-covering, especially with emerging concerns about the new winter crops.	3)	The ending stocks-to-use ratio for U.S. wheat is at its highest level in thirty years.

The weekly Newsom on the Market column can be found on subscription sites only. On DTN Pro it is in News/Town Hall and on MyDTN in News/Columns.

MORE COMMODITY-SPECIFIC COMMENTS

CORN July corn is down 1 3/4 cents early Tuesday after USDA said 17% of corn was planted, almost even with its five-year average pace. Producers wasted no time in catching up last week, but face another challenge later this week when heavy rains are expected to return to the Corn Belt, putting down the heaviest amounts from Arkansas to Illinois. In South America, drier weather is helping Argentina's corn harvest progress and occasional showers are keeping Brazil's second corn crop in good shape. July corn remains under bearish pressure and is holding within its sideways range, so far.

SOYBEANS July soybeans are down 4 1/2 cents early, giving back part of Monday's 11 cent gain after USDA showed 6% of soybeans already planted, up from the five-year average of 3%. It is still early in the planting season, but if the eagerness already seen in Mississippi, Louisiana, and Arkansas is any sign of what lies ahead, achieving record soybean acres should be no problem this year. In Argentina, the soybean harvest was reported as 16% complete late last week and should be doing better now with a drier forecast for the week ahead. On one hand, the trend in July soybeans remains down as Brazil's record harvest plus the anticipation of record soybean plantings in the U.S. is a tough bearish combination for prices to overcome. On the other hand, July soybeans are finding support above $9.41 1/4, the low of its outside weekly reversal, with help from commercial buying.

WHEAT July Chicago wheat is down 1 3/4 cents early, still struggling to find support at new contract lows after USDA's crop ratings for winter wheat showed a slight increase in DTN's Winter Wheat Condition Index, moving from 133 to 134. USDA also said 32% of winter wheat was already headed, up from 24% a year ago. 22% of spring wheat has been planted and 5% has emerged, down from its usual paces and not helped by Monday's snow in North Dakota. With wheat prices dredging along near contract lows, it is easy to overlook that some bullish concerns are beginning to emerge. Dry weather in western Europe, cold and wet weather in Canada, and the anticipation of heavy rains from Arkansas to Illinois this week all present potential threats to this year's wheat crop. So far however, July Chicago wheat remains in a downtrend with only commercial buyers showing interest.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.24	$0.02	-$0.35	May	-$0.001
Soybeans:	$8.91	$0.11	-$0.70	May	$0.005
SRW Wheat:	$3.63	-$0.02	-$0.39	May	$0.001
HRW Wheat:	$3.14	-$0.02	-$0.87	May	$0.006
HRS Wheat:	$4.84	-$0.03	-$0.37	May	$0.020

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

Toddcan be followed throughout the day at www.twitter.com\ToddHultman1

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