DTN Closing Grain Comments

General Comments:

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

The June U.S. dollar index is down 0.11 at 98.84. June gold is up $2.70 at $1,268.60 while July silver is down $0.05 and July copper is up 0.0140. The Dow Jones Industrial Average is down 49 at 20,932. June crude oil is up $0.41 at $49.38. June heating oil is down $0.0013, June RBOB gasoline is down $0.0027, and June natural gas is up $0.039.

For the week:

July corn closed up 2 3/4 cents and December closed up 3 cents. July soybeans were down 4 1/2 cents while the November was down 6 1/4 cents. July Chicago wheat was up 11 1/4 cents, July Kansas City wheat was up 20 cents, and July Minneapolis wheat was up 19 1/4 cents.

Corn:

July corn ended down 2 3/4 cents Friday, but was up the same amount on the week as all the talk of weather threats and U.S. planting concerns had little impact on prices. Friday's weather map showed precipitation from Colorado to Ohio with snow west of central Iowa. Plenty of precipitation is in store for the Corn Belt this weekend with flooding concerns from eastern Oklahoma into Illinois and chances for snow in the southwestern Plains. The Dakotas will be drier, but temperatures are still cold for planting. Meanwhile down south, DTN's seven-day forecast is mostly dry and favorable for corn harvest in Argentina, now estimated at 26% complete by Buenos Aires Cereal Exchange. With the big increase in South American corn production expected this year, July corn remains under bearish pressure in a sideways range with prices near support at $3.61 3/4. DTN's National Corn Index closed at $3.28 Thursday, priced 41 cents below the July contract and within a sideways range. In outside markets, the June U.S. dollar index is down 0.11 after the U.S. Commerce Department reported U.S. real GDP up 1.9% in the first quarter from a year ago, less than was expected. Congress approved moving the government shutdown deadline to next Friday and now the measure needs the President's approval.

Soybeans:

July soybeans closed down a penny Friday and was down 4 1/2 cents on the week after giving back the gains from Monday's rally. This year's supply outlook for soybeans remains heavily bearish and these weather delays in corn planting are only adding to concerns that soybean acres will be even higher than USDA estimated. Meanwhile, Argentina's soybean harvest is reported as 32% complete with drier weather helping things along. As bearish as this year's outlook is for soybeans, July prices have been able to hold sideways the past four weeks, thanks to commercials turning net long. This may be a temporary pause until more is known about this year's U.S. crop, but for now, July soybeans are holding above the April low of $9.41 1/4. DTN's National Soybean Index closed at $8.79 Thursday, priced 79 cents below the July contract and up from its lowest prices in a year.

Wheat:

July Chicago wheat ended up a penny Friday and was up 11 1/4 cents on the week -- a decent, but restrained rally in the face of this weekend's weather concerns. Heavy rains are expected to fall on already wet soils from eastern Oklahoma into Illinois and winter wheat will likely be damaged in the process. In addition, snow is expected in eastern Colorado and western Kansas and some headed wheat will be exposed. To the north, the Dakotas will be drier this weekend, but temperatures are still cold for seeding. Next week, we will hear firsthand reports from DTN's Crops Technology Editor Pam Smith as she heads out on the Wheat Quality Council's annual Kansas wheat crop tour and the assessments will be interesting, coming after this weekend's weather. So far, both July Chicago and July Kansas City wheat remain in downtrends with noncommercial traders heavily bearish in Chicago wheat. DTN's National SRW index closed at $3.79 Thursday, priced 53 cents below the July contract and up from its lowest price in 2017. DTN's National HRW index closed at $3.37 and up from its lowest price in 2017.

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

Follow Todd Hultman on Twitter @ToddHultman1

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