DTN Before The Bell Grain Comments

Morning CME Globex Update:

July corn was down 3 1/4 cents, July soybeans were down 2 1/4 cents, and July K.C. wheat was down 5 cents. Corn, soybeans, and wheat are all starting lower early Thursday with the last of this week's rain moving through the eastern Midwest. USDA's weekly report of export sales was bullish again for corn and soybeans, but bearish for wheat.

Other Markets:

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

Corn:

July corn was down 3 1/4 cents early Thursday with clear skies and warmer temperatures pushing the last of this week's rain eastward, bringing hope for better planting conditions in May. On Thursday however, Illinois and Indiana are dealing with heavy rain and are under flood watch. Some corn acres will likely be lost in and around Missouri, but there is still time to minimize those losses. Early Thursday, USDA said last week's export sales and shipments of corn totaled 30.4 and 48.3 million bushels respectively, another bullish combination for the week. Total shipments are up 51% in 2016-17 from a year ago and should give USDA something to think about for their May 10 WASDE report. Even so, July corn remains in a sideways range with bearish pressure from South America's increased production in 2017. DTN's National Corn Index closed at $3.34 Wednesday, priced 40 cents below the July contract and still in a sideways range. There were 544 contracts of May corn delivered early Thursday. In outside markets, the June U.S. dollar index is down 0.05 while metals and energies are starting lower.

Soybeans:

July soybeans were down 2 1/4 cents early with warmer and drier weather expected to help planting conditions through at least mid-May. Heavy showers are adding to problems in Illinois and Indiana Thursday morning and more flooding is possible, but traders are apt to be more focused on what lies ahead, meaning more soybean acres planted. Early Thursday, USDA said last week's export sales and shipments of soybeans totaled 11.7 and 23.5 million bushels respectively, lower amounts than last week, but still bullish in terms of USDA's estimated export pace. So far, soybean shipments are up 18% in 2016-17 from a year ago with 18 weeks left in the season. July soybeans are still near their highest level in four weeks, but remain in a downtrend with plenty of bearish pressure from expectations for increased soybean supplies in 2017. DTN's National Soybean Index closed at $9.01 Wednesday, priced 74 cents below the July contract and near its highest price in five weeks. Among May contracts, there were 49 deliveries in soybeans, 320 deliveries in soybean oil, and 226 deliveries of soybean meal early Thursday.

Wheat:

July Chicago wheat was down 4 3/4 cents and July K.C. wheat was down 5 cents early with more favorable weather forecast to help wheat rebound from a tough weekend. Day two of this week's HRW crop tour settled on an average yield of 46.9 bushels an acre which is still fairly high, but keep in mind that many of the worst fields in western Kansas were excluded from the figures as many crops badly lodged and not able to be evaluated under snow. So while this year's winter wheat crop appears to be doing well in central Kansas, it seems likely that some acres will be lost in western Kansas, reducing U.S. wheat acres that were already at their lowest in over a century. Outside the U.S., France's wheat likely suffered some freeze damage, but a warmer forecast is expected to help conditions in the Canadian Prairies. July Chicago wheat remains in a new uptrend this week with lots of questions about the growing season ahead. DTN's National SRW index closed at $4.10 Wednesday, priced 44 cents below the July contract and near its highest price in seven weeks. There were 150 deliveries of K.C. wheat early Thursday.

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

FollowTodd on Twitter @ToddHultman1

(BAS)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.