DTN Early Word Grains

By Darin Newsom
DTN Senior Analyst

6:00 a.m. CME Globex:

December corn was fractionally lower, November soybeans were 2 cents lower, and December Chicago (SRW) wheat was 3 cents lower.

CME Globex Recap:

Grain and oilseed markets opened Sunday's overnight session with contracts trading higher, but markets couldn't hold early gains. Other commodities were mixed, despite a lower U.S. dollar index. Gold posted a rally while crude oil was near unchanged. DJIA futures also rallied.

OUTSIDE MARKETS:

The Dow Jones Industrial Average closed 1.72 points lower at 22,773.67 Friday. DJIA futures were 36 points higher early Monday morning. The U.S. dollar index lost 0.09 to 93.70 while December 30-year T-Bonds were 4/32 higher at 152'01. December gold gained $10.30 to $1,285.20. Crude oil was $0.05 higher at $49.34 while Brent crude dipped $0.34 to $55.28. China's Dalian soybean market was mixed while Malaysian palm oil futures were mostly higher overnight.

	BULL		BEAR
1)	Rains slowed corn harvest this past weekend, with more delays expected due to the remnants of Hurricane Nate.	1)	Despite the rains, December corn still seems destined to test its contract low of $3.44 1/4.
2)	November soybeans rallied above last week's high during the overnight session.	2)	The short-term commercial outlook for soybeans remains bearish, indicated by the strong carry in the November-to-January futures spread.
3)	Minneapolis wheat was holding small gains early Monday morning.	3)	Winter wheat contracts remain in short-term downtrends on their respective daily charts.

The weekly Newsom on the Market column can be found on subscription sites only. On DTN Pro it is in News/Town Hall and on MyDTN in News/Columns.

MORE COMMODITY-SPECIFIC COMMENTS

CORN Another Monday morning brings another quiet overnight session for the December corn contract. Dec corn posted a 2 1/4-cent range, though coming under light pressure as the overnight turned into early Monday. The contract still finds itself mere pennies from its low of $3.44 1/4, unable to generate buying interest despite a harvest slowed by rain this past weekend over parts of the Western Corn Belt, while the eastern U.S. Midwest looks at the strong likelihood of soaking rains from the remnants of Hurricane Nate. If soybeans continue to weaken Monday, look for corn to quietly following.

SOYBEANS The soybean market looked as if it could build bullish momentum following a higher open to the overnight session. However, after rallying almost 5 cents, the nearby November contract found renewed selling interest and was trading lower early Monday. It's interesting to note that the overnight high of $9.77 was above last week's peak of $9.76. Again, this should have triggered buy orders, particularly with China back in the market after being on holiday last week, but it didn't. Trade volume did increase to 23,800 contracts, hinting at a more active day as Monday progresses.

WHEAT Despite a lower U.S. dollar index, winter wheat contracts couldn't hold early overnight gains to trade higher early Monday morning. Technically, the December Chicago contract remains in a short-term downtrend on its daily chart, a trend that could accelerate if the contract trades through last week's low of $4.38. The overnight low, through early Monday, was $4.39 3/4. Minneapolis spring wheat was still fractionally higher, but could come under increased spillover pressure from winter markets as the morning progresses.

DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.05	$0.01	-$0.45	Dec	$0.007
Soybeans:	$8.94	$0.05	-$0.79	Nov	$0.013
SRW Wheat:	$4.04	$0.05	-$0.40	Dec	$0.022
HRW Wheat:	$3.60	$0.03	-$0.76	Dec	$0.005
HRS Wheat:	$5.80	$0.09	-$0.43	Dec	$0.003

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

Darin can be followed throughout the day at www.twitter.com\DarinNewsom

(BAS)

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