DTN Closing Grain Comments

General Comments:

Corn was down 6 cents in the May contract and down 4 3/4 cents in the December. Soybeans were down 8 3/4 cents in the May contract and down 7 3/4 cents in the November. Wheat closed down 1/2 cent in the July Chicago contract, up 1/2 cent in the July Kansas City and up 6 1/4 cents in the July Minneapolis contract.

The June U.S. dollar index is up 0.25 at 98.90. June gold is up $1.50 at $1,268.70 while May silver is down 17 cents and July copper is up $0.0120. The Dow Jones Industrial Average is up 21 at 21,031. June crude oil is down $0.12 at $49.44. June heating oil is down $0.0114 while June RBOB gasoline is down $0.0361 and June natural gas is up $0.090.

Corn:

July corn gave back a nickel Wednesday, but is still finding support from this spring's planting difficulties. Wednesday's weather map showed heavy rain in Arkansas, southern Missouri, and Wisconsin with snow in Minnesota and sub-freezing temperatures in the Dakotas. The colder temperatures are expected to linger into May and will slow planting progress in the northern states. Meanwhile, crop conditions in Brazil are said to be favorable with no major threats seen to this year's second corn crop. On the demand side, the U.S. Energy Information Administration said last week's ethanol production dropped from 993,000 to 987,000 barrels per day while inventory increased from 23.0 to 23.3 million barrels. The slight slowdown in production is normal for this time of year and does not hurt the outlook for corn demand. So far, July corn continues to trade within its sideways range with support at the March low of $3.61 3/4. DTN's National Corn Index closed at $3.30 Wednesday, priced 35 cents below the May contract and within a sideways range. In outside markets, the June U.S. dollar index is up 0.25, rebounding from Tuesday's new five-month low with U.S. stocks back near their record highs.

Soybeans:

July soybeans closed down 8 1/2 cents Wednesday, pressured not only by widespread expectations for increased soybean supplies in 2017 but also by concerns that this spring's planting difficulties for corn will lead to even more soybean acres than are already expected. Everyone knows about Brazil's record soybean harvest by now, and it is possible that harvest pressure is easing as Brazil's lowest soybean price so far came on April 10. It is also curious that U.S. soybean prices remain competitively close in price to Brazil's while commercials have also turned net long in soybeans -- possible signs of better-than-expected demand. There is no argument, however, that July soybeans remain in a downtrend with noncommercial traders holding a bearish view. DTN's National Soybean Index closed at $8.85 Wednesday, priced 70 cents below the May contract and up from its lowest prices in a year.

Wheat:

July Chicago wheat traded higher much of the morning, but ended a half-cent lower Wednesday in spite of emerging weather concerns. Wednesday's heavy rains in Arkansas and southern Missouri are expected to be followed by more over the weekend and possibly inflict damage on wheat crops as far north as southern Illinois. At the same time, western Kansas experienced subfreezing temperatures early Wednesday and more cold temperatures are expected into Monday. Wednesday's snow and cold temperatures in the Northern Plains is also adding to spring wheat planting delays, and it will be a while before they get going in western Canada. Outside the U.S., Western Europe reported light showers, but remain dry overall. July Chicago wheat remains in a downtrend with noncommercial traders heavily short. DTN's National SRW index closed at $3.70 Wednesday, priced 39 cents below the May contract and up from its 2017 low. DTN's National HRW index closed at $3.26, also up from its low in 2017.

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

Follow Todd Hultman on Twitter @ToddHultman1

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