DTN Before The Bell Grain Comments

Morning CME Globex Update:

December corn was down 2 1/2 cents, November soybeans were down 5 cents, and July Minneapolis wheat was up 5 cents. Another drop in USDA's spring wheat crop rating has July Minneapolis wheat up 5 cents at the morning break. Other crop ratings showed little change, leaving most other grains under pressure from this week's generally favorable forecast.

Other Markets:

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

Corn:

December corn was down 2 1/2 cents early Tuesday, not showing much change in the crop rating while this week's temperatures remain fairly mild in the Corn Belt east of Nebraska. USDA said 67% of corn was still rated good-to-excellent while DTN's Corn Condition Index inched up 2 points to 161. That is still the lowest index value in four years with Indiana and South Dakota showing the largest problem areas. DTN's seven-day forecast expects moderate amounts over most of the Corn Belt and heavier amounts over the southeastern U.S., but only light amounts in the northwestern Plains where conditions remain the driest. In spite of this week's favorable forecast, December corn remains in an uptrend. DTN's National Corn Index closed at $3.37 Monday, priced 38 cents below the July contract and near its highest price in eleven months. Outside markets are showing most commodities lower with August crude oil down $1.07 a barrel.

Soybeans:

November soybeans were down a nickel early Tuesday with ongoing pressure from this week's forecast for rain and mostly mild temperatures across the Midwest. Late Monday, USDA said 96% of soybeans were planted and 89% had emerged -- we just don't yet know how many planted acres those percentages are based on and that continues to be a bearish concern. USDA said 67% of soybeans were rated good to excellent and DTN's Soybean Condition Index of 161 was down 1 point on the week. 16% of soybeans in South Dakota rated either poor or very poor, but other large soybean states are doing well. With no strong weather threat at hand, November soybeans remain in a downtrend, heading towards USDA's Acreage and Grain Stocks reports on June 30. DTN's National Soybean Index closed at $8.73 Monday, priced 65 cents below the July contract and holding above its lowest prices in over a year.

Wheat:

July Minneapolis wheat was up 17 1/2 cents at one point overnight, but is up just a nickel at the morning break after USDA released another lower crop rating for spring wheat. USDA's good-to-excellent rating for spring wheat fell from 45% to 41% late Monday, taking DTN's Spring Wheat Condition Index from 105 to 84, still the lowest since 1988. Poor-to-very poor ratings for South Dakota, Montana, and North Dakota were 64%, 37%, and 24% respectively. Meanwhile, 28% of winter wheat has been harvested and 49% of the remaining crop is rated good-to-excellent. Harvest in Kansas is 22% complete and Illinois is 65% finished. Outside of the U.S., western Europe's wheat crop is considered to be in fair condition, but there are concerns of dryness. July K.C. wheat is down 5 1/4 cents early Tuesday with chances for rain later in the week helping to ease the impact of this week's hot temperatures. Even so, the trend for all three wheats remains up. DTN's National SRW index closed at $4.44 Monday, priced 23 cents below the July contract and at its highest price in a year.

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

Follow Todd Hultman on Twitter @ToddHultman1

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