DTN Before The Bell Grain Comments

Morning CME Globex Update:

July corn was up 6 1/4 cents, July soybeans were up 9 3/4 cents, and July Chicago wheat was up 12 1/4 cents. July K.C. wheat was up 18 cents early Monday after winter wheat crops were hit by snow in western Kansas and Nebraska over the weekend and by heavy rains in the southern Midwest. Corn and soybeans were also starting higher with increased chances that some acres will be lost in 2017.

Other Markets:

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

Corn:

July corn was up 6 1/4 cents early Monday after a turbulent weekend of weather left snow in Kansas and Nebraska and flooded fields from eastern Oklahoma to southern Illinois, just as last week's forecasts indicated. Monday morning's map shows snow in the northwestern Midwest and scattered showers in the northern Midwest, adding to heavy seven-day totals in many areas of the Corn Belt. Friday's CFTC data showed noncommercial traders modestly bearish in corn with 83,268 net shorts as of Apr. 25, up from 36,742 the previous week. Commercials were net long 78,120 contracts, the most since late September and a good show of support for corn prices in their sideways range. July corn continues to hold above support at $3.61 3/4. DTN's National Corn Index closed at $3.25 Friday, priced 42 cents below the July contract and within a sideways range. In outside markets, the June U.S. dollar index is quiet, trading down 0.12 while metals and energies are mostly lower. NBCnews.com reported a deal has been reached among Congressional negotiators to avoid a government shutdown, buying time until Sep. 30.

Soybeans:

July soybeans were up 9 3/4 cents early Monday, drawing influence from corn and wheat and also being helped by early commercial buying in soybean meal. Heavy rains have created flooded fields in an around Missouri and southern Illinois and more rain is expected to return to the area Wednesday. Otherwise, the bulk of this week's rain will fall in the eastern Midwest, northeastern and southeastern states. Soybeans have the better chance of being planted late, but it seems likely that some acres will be lost in 2017's total planting mix. Friday's CFTC data showed noncommercials slightly bearish in soybeans with 43,737 net shorts as of Apr. 25, up from 12,673 the previous week. Commercials on the other hand, were net long 99,348 contracts, the most since June 2015 and a surprisingly strong show of support for soybean prices in the mid-$9s. July soybeans remain in a downtrend, but continue to hold support above the outside weekly reversal posted three weeks ago. DTN's National Soybean Index closed at $8.78 Friday, priced 78 cents below the July contract and up from its lowest prices in a year.

Wheat:

July Chicago wheat was up 12 1/4 cents early along with an 18 cent gain in July K.C. wheat after winter wheat was hit by snow in western Kansas and heavy rain which flooded fields in the southern Midwest. Monday afternoon temperatures in the 60s should get rid of the snow in western Kansas, but assessing this weekend's damage will take time and makes this week's Kansas crop tour especially interesting. DTN will be posting reports from Crops Technology Editor Pam Smith and her tweets can be followed at @PamSmithDTN. This weekend's unusual weather caught noncommercial traders holding a record high 130,036 net shorts as of Apr. 25, reported the CFTC on Friday. Commercials are once again being rewarded for supporting wheat prices, holding 122,534 net longs which is also the most on record. Technically, July Chicago wheat remains in a downtrend while July K.C. wheat can turn its trend higher with a daily close above $4.45 1/4. DTN's National SRW index closed at $3.84 Friday, priced 48 cents below the July contract and up from its lowest price in 2017. Both Chicago and K.C. wheat contracts have a 30-cent daily trading limit on Monday.

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

FollowTodd on Twitter @ToddHultman1

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