DTN Before The Bell Grain Comments

Morning CME Globex Update:

December corn was down 4 1/2 cents, November soybeans were up 2 1/2 cents, and July K.C. wheat was up 3 1/4 cents. While the southwestern U.S. encounters extreme heat this week, temperatures in the Midwest will be generally mild, favorable for developing row crops. December corn is down 4 1/2 cents and November soybeans are up 2 1/2 cents.

Other Markets:

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

Corn:

December corn was down 4 1/2 cents early Monday with a bearish looking forecast to start the week. High temperatures will be mostly in the 80s across the Midwest this week with moderate showers starting Thursday. The southwestern Plains will be especially hot with the mid-90s possibly reaching South Dakota on Wednesday. Friday's CFTC report showed noncommercials turned bullish in corn as of June 13 with 85,258 contracts net long, a switch from 32,459 net shorts, which coincided with a bullish technical breakout the previous week. Since then, corn prices have struggled to hold steady against the headwind of milder forecasts, but December corn does remain in an uptrend. DTN's National Corn Index closed at $3.41 Friday, priced 39 cents below the July contract and near its highest price in eleven months. Outside markets are quiet early Monday with the June U.S. dollar index up 0.13 and other commodities mixed.

Soybeans:

November soybeans were up 2 1/2 cents early Monday, pushing their highest prices in three weeks in spite of a milder forecast across the Midwest with chances for rain later this week. Both soy products are also a little higher early after August palm oil was slightly lower overnight. Like corn, soybeans have seen more favorable forecasts the past week, but soybean prices have held up better than corn and the credit goes to good demand. Friday's CFTC report showed noncommercials less bearish in soybeans as net-shorts were trimmed back from 66,882 to 45,956 as of June 13. Commercial net longs totaled 89,810, still finding soybeans' current prices attractive. Soybeans still have a potentially bearish hump to get over on June 30 when USDA releases its Acreage report. For now, November soybeans remain in a downtrend, but appear well-supported in the low to mid $9s. DTN's National Soybean Index closed at $8.70 Friday, priced 65 cents below the July contract and holding above its lowest prices in over a year.

Wheat:

All three wheats were modestly higher early with July Minneapolis leading the way, trading up 5 1/4 cents. The seven-day forecast remains mostly dry for the northwestern Plains and the western edge of the southwestern Plains with triple-digit temperatures expected in the southwestern Plains after Tuesday. July K.C. wheat is up 3 1/4 cents early with the next few days dry for harvest in Kansas before rain chances develop in eastern Kansas on Thursday. Friday's CFTC report showed noncommercials trimmed back net shorts in Chicago wheat, from 76,590 to 60,516 as of June 13. Commercials remained net long 58,560 contracts, a vote of confidence for wheat's value in the low to mid $4s. After June 13, Chicago wheat prices rallied to their highest level in three months on Friday and much more noncommercial short-covering was likely. The trend is currently up for all three wheats with spring wheat encountering drought conditions in the Dakotas and eastern Montana. DTN's National SRW index closed at $4.30 Friday, priced 24 cents below the July contract and at its highest price in nearly a year.

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

Follow Todd Hultman on Twitter @ToddHultman1

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