DTN Before The Bell Grain Comments

By Darin Newsom
DTN Senior Analyst

Morning CME Globex Update:

The commodity sector stayed green through early Thursday morning, despite a slow strengthening of the U.S. dollar. The few exceptions were cocoa, orange juice, and natural gas.

Other Markets:

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

Corn:

Corn stayed above unchanged Thursday morning, supported by spillover buying from soybeans. Weekly export sales and shipment numbers (for the week ending Thursday, September 28) of 32 mb and 38 mb respectively were solid but unspectacular. For the young marketing year total sales of 478.9 mb are 41% below last year while shipments of 122.5 mb are 43% lower. The bearish aspect of this is sales, at this pace, project to total demand for the marketing year of only 1.538 bb. But, and this is key, it is far too early to tell.

Soybeans:

Soybeans held firm through Thursday's early hours, though the Nov contract was 2 cents off its overnight session high. Futures spreads hint at a lack of commercial buying with futures spreads relatively flat. Weekly export sales and shipments (for the week ending Thursday, September 28) were solid coming in at 37.3 mb and 36.2 mb respectively. As for the weekly shipment number, exports to China were reported at 20.1 mb, down from the previous week's 24.7 mb.

Wheat:

The wheat complex finished the overnight session higher, led by a 7-cent rally in the December Minneapolis and a 6 1/2-cent gain by the March Minneapolis contract. From a technical point of view, this week's rally by Dec spring wheat is impressive and nearing an upturn on its weekly chart. Winter wheat contracts were less ambitious over the course of Thursday morning, but did show small gains. Total marketing year shipments for all wheat (through the week ending Thursday, September 28) of 344.6 mb continue to lag last marketing year's pace by 3%.

Darincan be reached at darin.newsom@dtn.com

FollowDarin on Twitter @DarinNewsom

(BAS)

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