DTN Before The Bell Grain Comments

Morning CME Globex Update:

December corn was down 4 1/4 cents, November soybeans were down 5 1/2 cents, and July Minneapolis wheat was down 12 1/4 cents. Corn, soybeans, and wheat were all lower early Thursday with rain still expected over most crop areas the next seven days. The U.S. dollar index was higher early, showing a delayed reaction to Wednesday's Fed announcement.

Other Markets:

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

Corn:

December corn was down 4 1/4 cents early Thursday with rain falling in Missouri and Illinois, part of an area from Kansas to the Great Lakes that is expected to get more rain the next few days. The rain is moderating the impact of hot temperatures in the central Midwest that are expected to last through Saturday. Early Thursday, USDA said last week's export sales and shipments of corn totaled 23.6 and 39.1 million bushels respectively, a neutral combination that has total shipments up 40% in 2016-17 from a year ago. December corn prices continue to pull back from last week's breakout and are now back down in the same sideways range they traded in since mid-March. Technically, the trend remains up, but more importantly, weather patterns are active and require daily attention. DTN's National Corn Index closed at $3.39 Wednesday, priced 39 cents below the July contract and down from its highest price in eleven months. In outside markets, the June U.S. dollar index is up 0.47, a delayed reaction after the Federal Reserve took a leap of faith in the economy and raised the federal funds rate a quarter-percent. The Fed also talked about possibly taking steps to reduce its balance sheet later this year, if economic conditions warrant. August gold is down $21.70.

Soybeans:

November soybeans were down 5 1/2 cents, continuing its bearish path with the seven-day forecast expecting rain in the central and eastern Midwest, starting with Thursday morning showers in Missouri and Illinois. The western half of the country is expected to be mostly dry which will add to poor crop ratings in the Dakotas. Soybeans continue to flow out of Brazil and have pulled business away from the U.S., but not all of it. Early Thursday, USDA said last week's export sales and shipments totaled 12.5 and 18.0 million bushels respectively, another bullish week that now has total soybean shipments up 20% in 2016-17 from a year ago. That demand is helping commercials stay interested in soybeans' lower prices, but even so, November soybeans remain in a downtrend with USDA's Acreage report on June 30 adding to bearish concerns. DTN's National Soybean Index closed at $8.67 Wednesday, priced 65 cents below the July contract and up from its lowest prices in over a year.

Wheat:

All three wheats were lower early Thursday and this time, July Minneapolis wheat is down the most, trading down 12 1/4 cents at the morning break. The northeastern corner of North Dakota has a chance for rain in the seven-day forecast, but the rest of the Dakotas and Montana are expected to stay mostly dry, adding to spring wheat crop concerns. In the southwestern Plains, eastern Kansas has a chance for rain, but the rest of the region will be dry and extremely hot, especially on Saturday when triple digit temperatures will reach into Kansas. USDA said last week's export sales and shipments of wheat totaled 13.7 and 22.9 million bushels respectively, a neutral combination that has total wheat shipments up 52% from a year ago early in the new 2017-18 season. In spite of Thursday morning's sell-off, July Minneapolis wheat remains in an uptrend while winter wheat contracts continue to chop sideways. DTN's National SRW index closed at $4.19 Wednesday, priced 24 cents below the July contract and near its highest price in eleven months.

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

Follow Todd Hultman on Twitter @ToddHultman1

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