DTN Closing Grain Comments

General Comments:

Corn was down 3 1/4 cents in the July contract and down 3 1/2 cents in the December. Soybeans were up 2 1/4 cents in the July contract and up 1 cent in the November. Wheat closed down 9 1/2 cents in the July Chicago contract, down 10 3/4 cents in the July Kansas City, and down 6 1/2 cents in the July Minneapolis contract. The June U.S. dollar index is down 0.25 at 98.88. June gold is up $2.10 at $1,229.80 while July silver is up 22 cents and July copper is up $0.0160. The Dow Jones Industrial Average is up 96 at 20,992. June crude oil is up $1.28 at $49.12. June heating oil is up $0.0236 while June RBOB gasoline is up $0.0237 and June natural gas is down $0.075.

Corn:

July corn closed down 3 1/4 cents Monday, pressured by a weekend of warmer and drier weather that allowed planters to make progress outside the wetter areas of the southern Midwest. Morning showers in South Dakota moved into Minnesota Monday, but other areas of the Corn Belt will enjoy another couple days of good planting weather before more rain arrives on Thursday. While corn planting remains a challenge in some areas, USDA showed the benefit of better barge traffic last week, saying 55.0 million bushels of corn were inspected for export -- a bullish total for the week that has total exports up 54% in 2016-17 from a year ago. Friday's CFTC data showed noncommercial traders in corn with 99,807 net shorts, the most bearish they've been since March 2016. Commercials, on the other hand, held 96,626 net longs, the most since April 2016, and continue to be a good source of support for prices. With Brazil's second corn crop still doing well, July corn remains in a sideways range with support at $3.61 3/4. DTN's National Corn Index closed at $3.32 Friday, priced 39 cents below the July contract and still in a sideways range. In outside markets, June crude oil is up $1.28 after Bloomberg news reported officials from Saudi Arabia and Russia favor extending production cuts. The June U.S. dollar index is down 0.25.

Soybeans:

July soybeans closed up 2 1/4 cents Monday, finding a little support from commercial buying and July soybean oil's first close above 33 cents in seven weeks. It also helped that corn planting likely made good progress over the weekend, taking some of the pressure off the need to plant more soybeans. Late Monday morning, the National Oilseed Processors Association (NOPA) said 139.1 million bushels of soybeans were crushed in April, down 6% from a year ago and less than expected, reported Dow Jones. NOPA estimated soybean oil stocks at 1.725 billion pounds at the end of April, down 11% from a year ago and also less than expected. Earlier, USDA said 10.3 million bushels of soybeans were inspected for export last week, bullish enough to keep total inspections up 16% in 2016-17 from a year ago, even while the weekly numbers are succumbing to competition from Brazil. Friday's CFTC data showed noncommercial traders modestly bearish in soybeans with 29,887 net shorts as of May 9. Commercials held 85,212 net longs, still a vote of confidence for soybeans' economic value. Early in the new season, soybean supplies are expected to increase in 2017-18, but demand is also doing very well and July soybean prices have been able to hold sideways for six weeks. DTN's National Soybean Index closed at $8.92 Friday, priced 71 cents below the July contract and down from its highest price in six weeks.

Wheat:

July Chicago wheat closed down 9 1/2 cents and July K.C. wheat was down 10 3/4 cents Monday, pressured by the return of warmer and drier weather, which gives the winter wheat crop a chance to recover from the snow and heavy rains encountered two weeks ago. USDA said Monday morning 25.4 million bushels of wheat were inspected for export last week, just enough to keep total inspections on pace with USDA's new export estimate of 1.035 billion bushels for 2016-17. It is not enough, however, to reduce the anticipation of 1.16 billion bushels of U.S. ending wheat supplies. Friday's CFTC data showed noncommercials still bearish in Chicago wheat with 76,293 contracts net short as of May 9, down 8,692 from the previous week. Commercials cut back their net longs to 72,432, possibly holding back for lower prices. July Chicago wheat continues to fall back from its upward surge of two weeks ago and is close to challenging its April low of $4.16. DTN's National SRW index closed at $3.91 Friday, priced 42 cents below the July contract and down from its highest price in seven weeks. DTN's National HRW index closed at $3.55, down from its highest price in ten months.

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

Follow Todd Hultman on Twitter @ToddHultman1

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