DTN Before The Bell Grain Comments

By Darin Newsom
DTN Senior Analyst

Morning CME Globex Update:

There was little movement, or change, in the grain and oilseed complex from when DTN's Early Word Grains commentary was posted. Outside commodities were still mixed as the U.S. dollar index continued to firm.

Other Markets:

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

Corn:

It should come as no surprise the corn market did little to nothing over the course of Wednesday morning, the Dec issue holding within its 1 3/4 cent session trading range on volume (futures only) of 10,500 contracts. Momentum looks to be to the downside, particularly if spillover selling from soybeans increases, meaning the market could find it difficult to rally Wednesday.

Soybeans:

Soybeans finished the overnight session lower with the Nov contract only a few ticks off its low of $9.60. As discussed in DTN's Early Word Grains commentary earlier, the contract established a minor (short-term) downtrend Tuesday that could keep the market under pressure. The most interesting aspect of Wednesday's session could be whether or not commercial selling intensifies. USDA announced a sale of 132,000 mt of 2017-2018 soybeans to China.

Wheat:

Winter wheat contracts finished overnight trade lower, though off session lows. Still, if pressure builds from corn and soybeans, and the U.S. dollar index, over the course of Wednesday's session winter wheat could sink again. Minneapolis spring wheat was able to hold gains over the course of the morning, supported by light commercial buying interest.

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

Follow Darin on Twitter @DarinNewsom

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