DTN Early Word Grains

6:00 a.m. CME Globex:

July corn was up 1 3/4 cents, July soybeans were up 3 cents, and July Chicago wheat was up 3 cents.

CME Globex Recap:

Even though the U.S. dollar is modestly higher early Monday, most commodities, including grains are also starting higher. Drier weather should help planting progress in the western Corn Belt the next five days, but light to moderate showers will continue in the eastern Corn Belt.

OUTSIDE MARKETS:

The Dow Jones Industrial Average closed up 141.82 points at 20,804.84. The NASDAQ Composite was up 28.57 points at 6,083.70 and the S&P 500 was up 16.01 points at 2,381.73 Friday. DJIA futures were up 10 points early Monday morning. Asian markets were mostly higher with Japan's Nikkei up 87.52 points (0.45%), Hong Kong's Hang Seng up 216.47 points (0.9%), and China's Shanghai Composite down 14.96 points (0.5%). European markets were also higher Monday with London's FTSE 100 up 33.05 points (0.4%), Germany's DAX up 18.48 points (0.15%), and France's CAC 40 up 14.39 points (0.3%). The U.S. dollar index was down 0.06 at 97.06 while the June euro was up 0.00205 at 1.12410. June 30-year T-Bonds were up 2/32nds at 153'29 while June gold was up $1.80 at $1,255.40. July crude oil was up 0.34 at $51.01 while July Brent crude was up $0.33 at $53.94. Soybeans at the Dalian Exchange were higher overnight and Malaysian palm oil futures are up 1.4%.

	BULL		BEAR
1)	July corn continues to hold above its March low of $3.61 3/4 while planting remains a challenge, especially from Missouri into the eastern Corn Belt.	1)	So far, growing conditions remain favorable for Brazil's second corn crop which is on track for a record harvest.
2)	In spite of last week's drop in Brazil's real, July soybeans continue to trade above the April low of $9.41 1/4 with help from Friday's commercial buying.	2)	Large supplies of freshly harvested soybeans in Brazil continue to compete for export business.
3)	Noncommercials remain heavily bearish in Chicago wheat, but 2017 weather has given winter wheat crops numerous challenges.	3)	It is old news, but 2017-18 will start with the largest carryover of U.S. wheat in thirty years.

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MORE COMMODITY-SPECIFIC COMMENTS

CORN July corn is up 1 3/4 cents early Monday after another week of rain made planting and replanting difficult, especially from Arkansas and Missouri to the eastern Corn Belt. The next five days will be drier for better planting in the western Corn Belt, but light to moderate showers will continue to make progress difficult on the eastern side. Meanwhile, this week's forecast for Brazil is mostly dry, except for showers in southern Brazil. Their second corn crop remains on track for a record harvest. In spite of bearish pressures from South America and last week's drop in Brazil's real, July corn continues to trade sideways with resistance at $3.95 3/4.

SOYBEANS July soybeans are up 3 cents, helped by early commercial buying and slightly higher starts in both, meal and bean oil. Traders may still be a little skittish about soybeans after Wednesday's unexpected drop in Brazil's real, but commercial buying in soybeans since then has helped to squelch the panic and showed again that commercials are willing to provide support near April's low of $9.41 1/4. It also helped that FOB soybean prices in the U.S. and Brazil stayed close to each other, meaning that the U.S. should be able to keep earning some of the export business. Monday morning's inspections report will give us the next update. So far, July soybeans remain in a sideways trading range with ongoing bearish concerns that record soybean acres will be planted in the U.S.

WHEAT July Chicago wheat is up 3 cents Monday with early commercial buying seen in the futures spreads of all three wheats. Last week's heavy rains in the southern Plains added to this year's crop concerns for winter wheat and draw more interest to USDA's crop ratings later Monday afternoon. Those concerns are keeping July Chicago wheat prices above their April low of $4.16 as the market starts to acknowledge that U.S. wheat production will be significantly lower in 2017 and will help to reduce the largest stockpiles in 30 years. Outside the U.S., planting progress remains slow in Canada and there are concerns of dryness in northern China, but no major problems yet. Technically, July Chicago wheat appears to be building a base of support.

	DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.35	$0.06	-$0.37	Jul	-$0.003
Soybeans:	$8.85	$0.09	-$0.68	Jul	$0.008
SRW Wheat:	$3.97	$0.10	-$0.38	Jul	$0.008
HRW Wheat:	$3.57	$0.12	-$0.81	Jul	$0.002
HRS Wheat:	$5.15	$0.11	-$0.41	Jul	-$0.004

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

Toddcan be followed throughout the day at www.twitter.com\ToddHultman1

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