DTN Before The Bell Grain Comments

Morning CME Globex Update:

July corn was up 1 3/4 cents, July soybeans were up 3/4 cent, and July Chicago wheat was up 1/4 cent. At 8 a.m. CDT, USDA announced 2.2 million bushels (60,000 mt) of U.S. soybeans were sold to unknown destinations for 2016-17 and another 2.2 million bushels for 2017-18. Grains were steady to lower overnight, but have inched higher the past two hours in quiet trading.

Other Markets:

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

Corn:

July corn was up 1 3/4 cents early Monday, staying in its same sideways range after most of the Corn Belt saw drier weather and hot temperatures in the western Plains over the weekend. DTN's latest forecast expects mostly light rain amounts the next seven days which will be helpful for crop conditions in the eastern Midwest, but not in the Dakotas where more rain is needed. Friday's CFTC data showed noncommercials still bearish in corn with 99,501 contracts net short as of May 30, up from 66,670 the previous week. Commercials increased net longs from 60,074 to 88,985, but futures spreads show no sign of urgency in commercial buying. With more competition expected from South American corn this summer, July corn continues to trade in its same sideways range, under the April high of $3.79 1/2. DTN's National Corn Index closed at $3.36 Friday, priced 37 cents below the July contract and down from its highest price in twelve weeks. In outside markets, the June U.S. dollar index is up 0.19 with the next Federal Reserve meeting set for next week.

Soybeans:

At 8 a.m. CDT, USDA announced 2.2 million bushels (60,000 mt) of U.S. soybeans were sold to unknown destinations for 2016-17 and another 2.2 million bushels for 2017-18. July soybeans were up 3/4 cent earlier in quiet trading, still near its lowest prices in over a year while the eastern Midwest benefits from a drier forecast for the week ahead. Monday afternoon's Crop Progress report from USDA will likely show planting progress on schedule and soybean traders will keep an eye on corn's crop ratings for clues about wet conditions in the eastern Midwest and dry conditions in the Dakotas. Friday's CFTC data showed noncommercial traders still bearish in soybeans with 63,347 net shorts as of May 30. Commercials increased net longs to 117,192, the most in two years and offers evidence that support for falling soybean prices should be near. So far however, July soybeans remain in a downtrend with increased supplies expected in 2017-18. DTN's National Soybean Index closed at $8.55 Friday, priced 66 cents below the July contract and near its lowest prices in over a year.

Wheat:

July Chicago wheat was up 1/4 cent early, not showing much reaction to hotter temperatures in the western Plains over the weekend while this week's forecast for drier weather should be helpful to winter crops getting closer to harvest. July Minneapolis wheat is up 1/4 cent with support from ongoing concerns of dryness in the Dakotas. Not surprisingly, Friday's CFTC data showed noncommercials still bearish in Chicago wheat with 83,735 net shorts as of May 30. Commercials increased net longs to 79,756, maintaining their passive support for wheat prices in the low $4s. Traders will be watching USDA's update of wheat crop ratings in Monday afternoon's Crop Progress report and a drop in spring wheat ratings seems likely. July Chicago wheat continues to trade sideways, staying close to its contract low at $4.16. DTN's National SRW index closed at $3.97 Friday, priced 32 cents below the July contract and down from its highest price in twelve weeks.

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

Follow ToddTwitter @ToddHultman1

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