DTN Before The Bell Grain Comments

Morning CME Globex Update:

At 8 a.m. CDT, USDA announced 5.9 million bushels (150,000 metric tons) of U.S. corn were sold to Columbia for 2017-18. Corn, soybeans and wheat were all lower early Monday with rain in this week's forecast over the western Plains and across the northern Midwest. Moderate summer temperatures are expected to continue, helping to ease crop stress.

Other Markets:

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

Corn:

At 8 a.m. CDT, USDA announced 5.9 million bushels (150,000 mt) of U.S. corn were sold to Columbia for 2017-18. At the morning break, December corn was down 5 1/4 cents with a new seven-day forecast showing chances for rain up and down the western Plains and summer temperatures staying moderate across the Midwest. Moderate to locally heavy rains are also expected across the northern Midwest while the southern Midwest is drier. The forecast is largely helpful to the most stressed areas of the Corn Belt, even though the rain will be too late in some areas. Looking at rainfall amounts over the last seven days, Monday afternoon's crop ratings from USDA may show improvement in Nebraska and Illinois. So far, December corn continues to trade in a sideways range, but is also getting close to support at $3.75. Friday's CFTC data showed noncommercials still bullish in corn, holding 172,065 net longs as of July 25. DTN's National Corn Index closed at $3.31 Friday, priced 43 cents below the September contract and near its lowest prices in 2017. In outside markets, the September U.S. dollar index is up 0.24, attracting early interest near its lowest spot level in over a year.

Soybeans:

November soybeans were down 14 cents early Monday, also pressured by a new seven-day forecast, which shows chances for rain over the western Plains and across the northern Midwest. Meanwhile, summer temperatures have been more moderate the past week and that is expected to continue the next 10 days, easing stress on crops. Soybean crop conditions are still a concern in 2017, but recent showers and milder temperatures have taken some of the edge off. For their part, noncommercials are keeping positions close to neutral. Friday's CFTC data showed noncommercials holding 58,785 net longs in soybeans as of July 25. For now, the trend in November soybeans remains up, and against its usual seasonal tendency for this time of year. DTN's National Soybean Index closed at $9.40 Friday, priced 61 cents below the August contract and down from its highest prices in four months.

Wheat:

September Chicago wheat was down 4 1/2 cents early with increased chances for rain in the southwestern and northwestern Plains the next seven days, although Montana is not included. Winter wheat prices have given back nearly a dollar the past few weeks, but are still holding above their five-week lows. With winter wheat in the latter stages of harvest and drought in spring wheat country already anticipated, it seems likely that winter wheat prices are looking for a trading range suitable for the remainder of the year. Friday's CFTC data showed noncommercials still lightly bullish in Chicago wheat as of July 25, holding 20,766 net longs. The most bullish fundamental argument continues to be in spring wheat, but Minneapolis wheat prices are in their fourth week of falling back, against the uptrend. DTN's National SRW index closed at $4.50 Friday, 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

(BAS)

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