DTN Before The Bell Grain Comments

Morning CME Globex Update:

July corn was up 1 1/2 cents, July soybeans were up 1 3/4 cents, and July Minneapolis wheat was up 12 1/4 cents. July Minneapolis wheat is up 12 1/4 cents early Tuesday, bolstered by the worst spring wheat crop rating in 23 years and a dry forecast with hot temperatures ahead. Corn and soybeans were starting a little higher in spite of a slightly higher USDA crop rating for corn.

Other Markets:

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

Corn:

July corn was up 1 1/2 cents early Tuesday, inching closer to the upper end of its trading range, but showing no sign of breaking out yet. Tuesday morning's weather map has rain along the Gulf Coast and in central Nebraska, but is dry around the rest of the Corn Belt. There are moderate rain amounts expected across the southern Canadian Prairies this week that will reach into the northern Midwest, but are expected to largely miss the Dakotas where the moisture is needed. Late Monday, USDA said 96% of corn was planted and 86% was emerged. USDA gave 68% of corn a rating of good or excellent, up 3 percentage points from a week ago, but the number of this year's corn acres is still not clear. DTN's Corn Condition Index jumped up 7 points to 165, but is still the lowest in four years. July corn continues to trade in a sideways range, under the April high of $3.79 1/2. DTN's National Corn Index closed at $3.36 Monday, 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 down 0.09 and August gold is up $12.20.

Soybeans:

July soybeans were up 1 3/4 cents Tuesday with the November contract up 2 cents. Late Monday, USDA said 83% of soybeans were planted and 58% had emerged, in line with their five-year averages. USDA won't issue soybean crop ratings until next week so soybean traders will take their cues from Monday's improved corn crop ratings as a sign that row crop conditions are getting generally better in the eastern Midwest -- just not in Indiana where 17% of crops are still rated either poor or very poor. The other emerging concern is in the Dakotas where this week's forecast remains dry and temperatures are expected to hit triple-digits this weekend. July soybeans remain in a downtrend, but are also showing signs of emerging support for prices at their lowest levels in over a year. DTN's National Soybean Index closed at $8.55 Monday, priced 66 cents below the July contract and near its lowest prices in over a year.

Wheat:

July Chicago wheat was up 5 3/4 cents and July Minneapolis wheat up 12 1/4 cents early after USDA showed wheat crop conditions worsened last week. Late Monday, USDA said 87% of winter wheat is headed and 10% has already been harvested, much from Texas where 58% of the wheat is in. DTN's Winter Wheat Condition Index dropped 3 points to 122 with 38% of South Dakota and 26% of Kansas wheat rated poor or very poor. USDA also said 90% of spring wheat has emerged, but dropped the good to excellent rating from 62% to 55%. In response, DTN's Spring Wheat Condition Index dropped from 158 to 137, the lowest reading for this time of year in at least 23 years. South Dakota showed the worst conditions with 32% of the crop rated either poor or very poor. With the seven-day forecast still looking dry for the Dakotas and a chance of triple-digit temperatures in South Dakota this weekend, July Minneapolis wheat continues to trend higher and winter wheat contracts are turning higher from the low end of their sideways ranges. DTN's National SRW index closed at $3.98 Monday, 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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