DTN Before The Bell Grain Comments

By Darin Newsom
DTN Senior Analyst

Morning CME Globex Update:

Grain and oilseed markets finished the overnight session lower, with even soybeans giving up early morning gains. Most other commodities were also under light pressure despite only a modest rally by the U.S. dollar index. A rally by DJIA futures hint at another day of buying in equities.

Other Markets:

DJIA futures	Higher
U.S. Dollar Index:	Higher
Gold:	Lower
Crude Oil:	Lower

Corn:

December corn drifted lower as Monday morning progressed, pressure by spillover selling from soybeans. December corn posted a new session low of $3.52 1/2, finishing overnight trade a tick off that mark. Most of the pressure, with overall trade volume light, seemed to come from noncommercial traders. It will be interesting to see how commercial interests move Monday after recently providing light support to the market.

Soybeans:

Soybeans were unable to hold overnight gains through the end of the session early Monday morning. Contracts were showing fractional losses as trade halted, waiting for the open of the day session. Recent weeks have seen commercial selling put pressure on the market despite almost daily announcements from USDA of new export sales. Speaking of which; USDA announced two sales, on for 126,000 metric tons of soybeans to unknown for the 2017-2018 marketing year and the other 261,000 mt of soybeans to China for the 2017-2018 marketing year.

Wheat:

Winter wheat contracts didn't move much over the course of Monday morning, finishing overnight trade still down about 2 cents. Light commercial selling was indicated in the Chicago market, though due to low volume trade spreads could have been skewed. Still, keep an eye on the December-to-March Chicago futures spread Monday to see if the carry does indeed start to strengthen again.

Darin can be reached at darin.newsom@dtn.com

FollowDarin on Twitter @DarinNewsom

(BAS)

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