DTN Before The Bell Grain Comments

Morning CME Globex Update:

December corn was up 7 1/4 cents, November soybeans were up 26 cents, and September Chicago wheat was up 29 cents. Grain prices started off with a bang Monday, led again by Minneapolis wheat posting its highest close in nearly four years. U.S. grain futures resume trading at 8:30 a.m. CDT with triple-digit temperatures expected in the northwestern Plains on Wednesday while temperatures in the eastern Midwest stay moderate.

Other Markets:

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

Corn:

December corn jumped to a higher start Monday, but avoided the double-digit gains seen in soybeans and wheat as traders were still digesting USDA's 90.9 million acre planting estimate from Friday. So far in 2017, crop conditions across the Corn Belt have been split east and west and this week's forecast reinforces that trend. The eastern Corn Belt is expecting moderate summer temperatures this week and rain around the Ohio River Valley. The western Corn Belt will be hotter and drier, adding to growing drought conditions out of the northwestern Plains and stressing corn getting ready to pollinate. Traders may see a lower crop rating in Wednesday afternoon's Crop Progress report as conditions have been mostly dry in western states. So far in 2017, December corn has held sideways under the June high of $4.09. Early Wednesday, there were 1,302 deliveries of July corn. DTN's National Corn Index closed at $3.42 Monday, priced 47 cents below the September contract and back near its highest prices in a year. In outside markets, the September U.S. dollar index is up 0.15 after Monday's gain related to a stronger-than-expected report on U.S. manufacturing.

Soybeans:

November soybeans started with a bang Monday, closing at a new three-month high after Friday's Commitments of Traders report revealed a record high holding of net shorts among noncommercial traders. Earlier Friday, USDA eased bearish fears by keeping its planting estimate at 89.5 million acres and since then, prices have traded higher with help from concerns of expanding drought out of the northwestern Plains. DTN's ten-day forecast continues to expect hot temperatures and mostly dry weather in the western Midwest while the eastern Midwest stays more moderate with chances for light to moderate showers. Depending on how weather plays out this summer, there is still a chance of harvesting a near-record soybean crop and the challenge for November prices will be to see if they can maintain this new uptrend once the noncommercial short-covering dies down. Among July contracts, 1,048 soybeans, 10 soybean meal, and 63 soybean oil were delivered early Wednesday. DTN's National Soybean Index closed at $9.03 Monday, priced 67 cents below the August contract and at a new six-week high.

Wheat:

September Chicago wheat continues to ride the coattails of this year's drought-fueled bull market in spring wheat and it is tough to say how long that will last. As far as the forecast goes, there is no relief seen for the northwestern Plains yet with the ten-day outlook still mostly dry and triple-digit temperatures expected in the Dakotas and Montana later Wednesday. While the focus of weather news here in the U.S. continues to support higher wheat prices, other wheat regions outside of North America are mostly in good shape so world wheat supplies are apt to remain ample in 2017-18. For now, all three wheats are actively trending higher and Monday's close in spot Minneapolis wheat was near its highest in four years. Among July contracts, 217 Chicago wheat and 455 K.C. wheat were delivered early Wednesday. DTN's National SRW index closed at $5.23 Monday, priced 32 cents below the September contract and at its highest price in nearly two years.

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

Follow Todd on Twitter @ToddHultman1

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