DTN Before The Bell Grain Comments

Morning CME Globex Update:

July corn was up 1 1/4 cents, July soybeans were up 4 3/4 cents, and July Minneapolis wheat was up 6 cents. July Minneapolis wheat started the new season with a bang, trading up 6 cents at its highest price in almost a year. July soybeans were up 4 3/4 cents early, showing support after diving to new lows late last week.

Other Markets:

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

Corn:

July corn was up 1 1/4 cents early with rain falling in eastern Kansas, eastern Texas, and Louisiana. This week's forecast has been in flux and the next three days is now expecting rain around the Great Lakes, central Texas, and along the Gulf Coast. The eastern Midwest catches more rain in the seven-day forecast. This week's export sales report from USDA will be released Friday morning and is likely to show another week of active corn shipments, up 45% so far in 2016-17 from a year ago. Brazil's next corn harvest is still in its early stages and has a few more weeks before its corn shipments start to pick up. With plenty of uncertainty about the number of this year's corn acres, July corn continues to trade within a sideways range, under the April high of $3.79 1/2. DTN's National Corn Index closed at $3.35 Wednesday, priced 37 cents below the July contract and down from its highest price in 11 weeks. In outside markets, the June U.S. dollar index is up 0.27 after Wednesday's Beige Book reported moderate growth in most of the Fed's twelve districts.

Soybeans:

July soybeans were up 4 3/4 cents early Wednesday, helped by light commercial buying in soybean oil after Malaysia's palm oil futures were slightly lower overnight. Part of the eastern Midwest is getting a break from the rain for another few days, but rain is still expected to return in the seven-day forecast. The western Midwest on the other hand, is off to a good start overall with light showers expected in the week ahead. This year's soybean crush pace has eased while soybean exports have been active -- even as Brazil's record harvest is being shipped. FOB soybean prices in the U.S. and Brazil remain very close which is beneficial for the continuation of U.S. export business. With record soybean acres anticipated, July soybeans remain in a downtrend. DTN's National Soybean Index closed at $8.50 Wednesday, priced 66 cents below the July contract and at its lowest price in over a year.

Wheat:

July Chicago wheat was up 1/2 cent early with rain falling in eastern Kansas and eastern Texas and K.C. wheat also trading a little higher. Even though this year's winter wheat crops have had their challenges and all U.S. wheat production will be likely be down in 2017, winter wheat prices have stayed near their lowest levels in seven years. With Thursday marking the start of a new season in wheat, the most bullish behavior is being seen in spring wheat where the July Minneapolis contract is up 6 cents early, its highest price in nearly a year. Also, the July/September Minneapolis wheat spread is trading at 34% of full carry which reflects a bullish commercial outlook. Outside the U.S., Canada's wheat acres are likely to be down in 2017 and dryness is noted in Spain, north-central Ukraine, and China, but no major problems are being reported yet. July Chicago wheat continues to trade sideways, helped by commercial support in the low-$4s. DTN's National SRW index closed at $3.97 Wednesday, priced 33 cents below the July contract and down from its highest price in 11 weeks.

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

Follow ToddTwitter @ToddHultman1

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