DTN Before The Bell Grain Comments

Morning CME Globex Update:

At 8 a.m. CDT, USDA announced 7.3 million bushels (198,000 mt) of U.S. soybeans were sold to unknown destinations for 2016-17 and another 2.4 million bushels (66,000 mt) for 2017-18. Corn, soybeans, and all three wheats were higher early Thursday with drier weather expected across most of the Midwest the next ten days. USDA's weekly report of export sales was neutral-to-bearish for corn, bullish for soybeans, and neutral for wheat.

Other Markets:

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

Corn:

December corn was up 3 cents early Thursday, still holding above support while the market makes its best guesses about the state of the 2017 corn crop. Wednesday's rains were helpful to dry fields in the western and central Corn Belt, but lighter than forecast across Iowa. Thursday's weather map shows morning rains around Missouri and southern Illinois with highs in the 80s across most of the Midwest. Early Thursday, USDA said last week's export sales and shipments of corn totaled 3.6 and 35.2 million bushels respectively, down from last week and a neutral-to-bearish combination for the week that put corn shipments up 28% in 2016-17 from a year ago. With South American corn currently out-competing the U.S., corn sales were at a marketing year low last week which is typical for this time of year. As the forecast looks mostly dry for the Corn Belt after Thursday, December corn continues to trade in a sideways range, holding above support at $3.75. DTN's National Corn Index closed at $3.29 Wednesday, priced 44 cents below the September contract and near its lowest prices in 2017. In outside markets, the September U.S. dollar index is quiet, but August gold is up $13.80 after the Federal Reserve kept interest rates unchanged at Wednesday's meeting.

Soybeans:

At 8 a.m. CDT, USDA announced 7.3 million bushels (198,000 mt) of U.S. soybeans were sold to unknown destinations for 2016-17 and another 2.4 million bushels (66,000 mt) for 2017-18. Before the announcement, November soybeans were up 8 cents, still lower on the week, but holding above their lows of the past three weeks. Wednesday's rains were helpful to crops in parts of the western and central Midwest, but will not cure all the problems revealed in Monday's lower crop ratings from USDA. Missouri and Illinois received rain overnight which is expected to move up the Ohio River Valley the rest of Thursday. From there, drier weather is expected the next ten days with moderate summer temperatures as soybeans go deeper into their pod-setting stage. Early Thursday, USDA said last week's export sales and shipments of soybeans totaled 11.1 and 21.1 million bushels respectively, bullish enough to keep total soybean shipments up 19% in 2016-17 from a year ago. So far, the trend in soybeans remains up with crops at risk in 2017, creating potential for a volatile reaction to USDA's next WASDE report on Aug. 10. DTN's National Soybean Index closed at $9.27 Wednesday, priced 62 cents below the August contract and down from its highest prices in four months.

Wheat:

September Chicago wheat was up 5 cents early Thursday, taking cues from corn while there still remains no significant precipitation expected in the northwestern Plains. Day two of the Wheat Quality Council's Hard Red Spring Wheat Tour travelled across northern North Dakota and witnessed more drought damage, as expected. Spring wheat yields averaged just shy of 36 bushels an acre on day two, down from 46.9 bushels a year ago. Fields near Canada had slightly better yields, but also showed more disease and pest issues (see DTN's "Spring Wheat Tour Day 2" by Staff Reporter Emily Unglesbee and Cash Grains Analyst Mary Kennedy). Early Thursday, USDA said last week's export sales and shipments of wheat totaled 18.3 and 17.5 million bushels respectively, a neutral combination that has total wheat shipments up 26% early in 2017-18 from a year ago. Technically, all three wheats remain in uptrends, but in the case of winter wheat, prices have given back so much that a resumption of the old sideways range seems likely. DTN's National SRW index closed at $4.47 Wednesday, priced 31 cents below the September contract and down sharply from its highest price in two years.

ToddHultmancan be reached at todd.hultman@dtn.com

FollowTodd on Twitter @ToddHultman1

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