DTN Before The Bell Grain Comments

Morning CME Globex Update:

At 8 a.m. CDT, USDA announced 5.3 million bushels (135,000 mt) of U.S. corn was sold to unknown destinations for 2017-18. Earlier Monday, corn, soybeans, and all three wheats were lower, responding to more moderate summer temperatures in this week's forecast and chances for rain throughout much of the Midwest.

Other Markets:

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

Corn:

At 8 a.m. CDT, USDA announced 5.3 million bushels (135,000 mt) of U.S. corn was sold to unknown destinations for 2017-18. Before Monday's announcement, December corn was down 8 1/4 cents with milder summer temperatures expected across the Midwest this week along with rain over much of the Corn Belt. As usual, the northwestern Plains continue to be left out of the forecast, but rain is expected to include Iowa and Minnesota. Of course, forecasted rain amounts remain suspect until they're in the rain gauge, but clearly, this week's more moderate temperatures are beneficial for row crops. Friday's CFTC data showed noncommercials possibly wrong-footed again, still bullish in corn with 177,147 net longs as of July 18. With plenty of unanswered questions about this year's corn crop, December corn continues to trade within a volatile sideways range and is holding above support at $3.75. DTN's National Corn Index closed at $3.35 Friday, priced 45 cents below the September contract and down from its highest prices in a year. In outside markets, the September U.S. dollar index is up 0.06, but still near its lowest spot prices in a year.

Soybeans:

November soybeans were down 20 cents, responding to this week's forecast for beneficial rains and more moderate temperatures across much of the Midwest. The rain is actually expected to cover the eastern half of the U.S. and may reach as far as eastern South Dakota. With over half of soybeans blooming and Monday's Crop Progress report expected to show 25% or more setting pods, this week's better weather conditions come at a good time for the soybean crop. We also can't forget that the dry Dakotas remain outside this week's rain forecast, pulling down this year's yield estimates. Friday's CFTC data showed noncommercials lightly bullish in soybeans with 40,831 net longs as of July 18. Commercials finally let go of the net longs they had held since March and turned lightly net short. Summer trading remains volatile in grains and prices are showing signs of losing upward momentum, but so far, the trend in soybeans remains up. DTN's National Soybean Index closed at $9.46 Friday, priced 63 cents below the August contract and near its highest prices in four months.

Wheat:

September Chicago wheat was down 8 cents early, influenced by Monday's sell-off in corn, but not because of any improvement in the northwestern Plains as the seven-day forecast remains dry for the region and wildfires are an increasing problem in Montana. September Minneapolis wheat was also trading lower, down 10 1/4 cents at the morning break, but still doing the best of the three wheats at holding its uptrend. World wheat production may be down roughly 3% in 2017-18 due largely to drops in North America and Australia, but world wheat supplies remain plentiful, including those outside of China. Friday's CFTC data showed noncommercials still lightly bullish in Chicago wheat with 22,182 net longs as of July 18, even though September prices continue to fall back from their July 5th high. Technically, all three wheats remain in uptrends, but winter wheat contracts continue to have difficulty holding previous gains. DTN's National SRW index closed at $4.68 Friday, priced 31 cents below the September contract and down from its highest price in two years.

ToddHultmancan be reached at todd.hultman@dtn.com

FollowTodd on Twitter @ToddHultman1

(BAS)

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