DTN Before The Bell Grain Comments

The Same as Earlier, Only More So

(DTN photo by Greg Horstmeier)

Morning CME Globex Update:

May corn was 2 1/2 cents higher, May soybeans were 8 1/4 cents higher, and Kansas City July wheat gained 4 cents. With little fresh news to change direction, most markets held the same position as discussed in DTN's Early Word Grains commentary, only to expanded degrees. Soybeans, crude oil, and gold extended overnight rallies while corn, wheat, and the U.S. dollar index moved to new session lows. The latter was more than 0.50 lower for the day.

Other Markets:

DJIA futures Higher
U.S. Dollar Index: Lower
Gold: Higher
Crude Oil: Higher

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Corn:

Corn contracts finished overnight trade at or near session lows. However, this isn't as dramatic as it sounds, for with continued tight trading ranges contracts also weren't that far off session highs either. Stronger carry in both old-crop and new-crop futures spreads suggest light commercial selling emerged as early morning progressed, something to watch as Tuesday's session gets under way.

Soybeans:

Soybean contracts held firm early Tuesday with old-crop July posting a new overnight session high, up 3 3/4 cents, shortly before the end of trade. Similar to Monday, commercial buying provided early morning support though it remains to be seen whether or not it will be strong enough to last the day. Light commercial interest was also seen in new-crop. USDA announced a sale of 132,000 metric tons of 2016-2017 soybeans to unknown destinations.

Wheat:

Kansas City HRW wheat futures slipped to a new low, down 4 1/2 cents, shortly before the end of the overnight session. Selling interest continues to build in both Kansas City and Chicago, enough to pull Minneapolis spring wheat lower as well. Traders could keep an eye on forecasts of severe weather across much of the U.S. Southern Plains HRW growing area Tuesday, though buying tied to possible damage isn't likely to happen.

Darin Newsomcan be reached at darin.newsom@dtn.com

FollowDarin on Twitter @DarinNewsom

(BAS)

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