DTN Closing Grain Comments

By Darin Newsom
DTN Senior Analyst

General Comments:

July corn was up 3 3/4 cents at $3.71 1/2 with new-crop December 3 1/2 cents higher at $3.89. July soybeans finished 1/2 cent lower at $9.75 3/4 with new-crop November unchanged at $9.67 3/4. July Chicago wheat closed 2 3/4 cents higher at $4.27, July Kansas City gained 2 cents at $4.26 1/2, and July Minneapolis added 2 cents to close at $5.41 3/4. The U.S. dollar index was 0.65 lower at 97.54. June gold was $23.00 higher at $1,259.40 while July silver was $0.188 higher and July copper dipped $0.0040. The Dow Jones Industrial Average fell 290 points to 20,689. June crude oil gained $0.52 to $49.18. The June distillates (heating oil) contract was $0.0213 higher, June RBOB gasoline added $0.0035, while June natural gas lost another $0.038.

Corn:

Commodities in general rallied Wednesday, due in part to the continued strong sell-off by the U.S. dollar and U.S. dollar index. Corn was one of those markets posting a gain with light commercial buying supporting old-crop July. New-crop December also posted a modest gain. However, both contracts continue to sit within last week's trading ranges, needing some fresh piece of news to spark a breakout. In old-crop, traders will take note of corn's weekly export sales shipment number Thursday, but being for the week ending Thursday, May 11 it may not qualify as "fresh". New-crop traders will continue to watch weather forecasts for this coming weekend and beyond.

Soybeans:

Old-crop soybeans couldn't build on Tuesday's momentum as commercial buying that had been providing support died out Wednesday. This allowed both the July and August to dip below unchanged near midday, with the sharp sell-off the U.S. dollar holding heavy selling at bay. By the close, July had once again gained on August, moving the spread to an inverse, indicating a late round of renewed commercial interest. This could still lead to announcements of new export sales being made with the most logical time being after the release of USDA'S weekly Export Sales and Shipments report Thursday morning, for the week ending Thursday, May 11. New-crop November closed unchanged.

Wheat:

Winter wheat contracts closed higher Wednesday though market bulls are likely to be disappointed by action in the Kansas City market. After trading as much as 9 cents higher, then getting the news that included in Egypt's latest purchase was 2 cargoes of U.S. HRW, Kansas City July was only able to show a 2-cent gain at the close. Futures spreads were flat hinting at a lack of interest from commercial traders. The wheat complex as a whole will keep an eye on Thursday morning's weekly export sales and shipment numbers, for the week ending Thursday, May 11, to see if shipments catch up with USDA's projected pace and more old crop sales were canceled or rolled to new-crop.

Darin Newsom can be reached at darin.newsom@dtn.com

Follow Darin Newsom on Twitter @DarinNewsom

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