DTN Before The Bell Grain Comments

Morning CME Globex Update:

December corn was unchanged, November soybeans were up 1 cent, and July K.C. wheat was up 1 1/4 cents. Corn and soybeans were staying close to Tuesday's closes early as traders await the release of USDA's Acreage and Grain Stocks reports on Friday. September Minneapolis wheat was up 11 1/4 cents at the morning break, fueled by ongoing concerns of drought.

Other Markets:

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

Corn:

December corn was steady early Tuesday with rain falling across the central Midwest, also including the eastern Dakotas and Minnesota. DTN's five-day forecast continues to show the best rain chances in the central and eastern Midwest while the western edge stays mostly dry. Temperatures are also split along the same lines with hotter readings in the western Corn Belt. In the extended forecast however, above-normal temperatures are expected across most of the U.S. Aside from weather, U.S. export business has been slowing as Brazil's record harvest becomes available, but corn shipments are still up 39% from a year ago. Trading is apt to be quiet ahead of Friday's Acreage and Grain Stocks reports -- reports that are historically known for surprises and big price impacts. Even though corn plantings are expected to be lower and crop conditions are not as good as a year ago, December corn remains in a downtrend. DTN's National Corn Index closed at $3.22 Tuesday, priced 38 cents below the July contract and near its lowest price in twelve weeks. In outside markets, the September U.S. dollar index is trading down 0.03, near its lowest price in seven months while other commodities are mixed.

Soybeans:

November soybeans were up a penny early Wednesday after a quiet overnight session was accompanied by rain across Nebraska, Minnesota, and Iowa. More rain is expected over the central and eastern Midwest the next five days, to be followed by hotter temperatures in the 6 to 10 day period. The big concern for soybeans of course, is USDA's estimate of planted acres due out Friday. Dow Jones' survey of analysts is expecting nearly 90 million acres which seems more like a minimum, given this year's wet spring. As previously mentioned, the June 30th report has surprised traders before and may again. June 1 soybean stocks are expected at 981 million bushels. With trading likely to be cautious ahead of Friday's reports, November soybeans remain in a downtrend. DTN's National Soybean Index closed at $8.48 Tuesday, priced 64 cents below the July contract and near its lowest price in over a year.

Wheat:

September K.C. wheat was up 1 1/4 cents early Wednesday with light to moderate showers in the eastern Dakotas and central Kansas, but mostly dry and favorable for winter wheat harvest everywhere else. The most bullish wheat continues to climb higher -- September Minneapolis wheat is up 11 1/4 cents early as DTN's five-day forecast continues to expect an absence of rain in the northwestern Plains. The bullish case for spring wheat is well-known, but what is not clear is how long it will continue to help hold up winter wheat prices. While U.S. wheat production will certainly be lower in 2017, the rest of the world's wheat regions are doing generally well, keeping a lid on winter wheat's gains. All three wheat remain in uptrends, but only Minneapolis wheat is actively pushing higher, fueled by drought in the northwestern Plains. DTN's National SRW index closed at $4.34 Tuesday, priced 19 cents below the July contract and down from its highest price in a year.

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

Follow Todd on Twitter @ToddHultman1

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