DTN Closing Grain Comments

General Comments:

Corn was down 2 1/2 cents in the July contract and down 1 1/4 cents in the December. Soybeans were up 2 3/4 cents in the July contract and up 4 1/4 cents in the November. Wheat closed up 4 cents in the September Chicago contract, up 4 1/2 cents in the September Kansas City, and up 22 cents in the September Minneapolis contract. The September U.S. dollar index is down 0.32 at 95.77. August gold is up $3.10 at $1,250.00 while September silver is up 17 cents and September copper is up $0.0135. The Dow Jones Industrial Average is down 160 at 21,470. August crude oil is up $.52 at $44.76. August heating oil is up $0.0203 while August RBOB gasoline is up $0.0257 and August natural gas is up $0.037.

Corn:

December corn closed down 1 1/4 cents in a quiet day of trading while showers moved across the central and northern Midwest. More rain is expected the next five days with heaviest amounts around northern Missouri, but the northwestern Plains will remain mostly dry. Corn prices are showing no concern yet, but there may be a period of hotter temperatures ahead for the central Midwest in the next six to ten days. Earlier Wednesday, the U.S. Energy Information Administration said ethanol production increased from 990,000 to 1,015,000 barrels per day last week while ethanol inventory fell a half-million barrels to 21.8 million barrels. The lower inventory is normal for this time of year and a bullish sign that ethanol demand for corn continues to be supportive for prices. December corn remains in a downtrend with Friday's USDA reports expected to show 89.8 million planted acres and 5.16 billion bushels on hand June 1. 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 0.32, at its lowest price in seven months after May's pending home sales were down .8% in May, weaker than expected, reported RTTNews.com.

Soybeans:

November soybeans closed up 4 1/4 cents, helped by persistent commercial buying at these lower prices and small gains in both soy products. Not surprisingly, Wednesday's trading volume was low with few wanting to jump in ahead of Friday's Acreage and Grain Stocks reports from USDA. Thursday's trading will probably be slow as well. Dow Jones' survey expects USDA to show 981 million bushels of soybean stocks on hand on June 1, but more attention will be put on soybean plantings, especially if USDA's number is much more than the 90 million acres that are expected. I can't emphasize enough the potential volatility waiting in Friday's numbers as the consequences of this year's planting size plays a large part in how the rest of this year will go. Weather of course, is the other major factor and there is a chance for hot temperatures coming to the central Midwest next week. With plenty of uncertainty still ahead, November soybeans remain in a downtrend with commercials showing interest for prices in the low-$9s. 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 closed up 4 1/2 cents, largely on the coattails of September Minneapolis wheat which was up 22 cents, back above $7.00 for the first time in nearly three years. The Dakotas did see some rain move through Wednesday, but coverage was patchy and amounts mostly light. DTN's forecast for the northwestern Plains the next ten days remains mostly dry -- not good for spring wheat production, but a source of constant bullish support for prices. K.C. wheat prices are also in an uptrend, but are struggling to stay higher as the winter wheat harvest crosses the half-way mark. The anticipation of lower U.S. wheat production in 2017 will help bring down some of wheat's big surplus. But, the new season is already starting with 1.16 billion bushels of carry and there are few wheat problems cited outside the U.S. Tuesday's International Crop Summary from USDA mentioned dry wheat conditions in southwestern Europe, north-central Ukraine, and the southern Canadian Prairies, but other major regions appear to be doing well. All three wheats remain in uptrends, but Minneapolis wheat is the only grain presently on a near-vertical climb. 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. DTN's National HRW index closed at $3.99, down from its highest price in a year.

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

Follow him on Twitter @ToddHultman1

(BAS)

Copyright 2017 DTN/The Progressive Farmer. All rights reserved.