DTN Before The Bell Grain Comments

By Darin Newsom
DTN Senior Analyst

Morning CME Globex Update:

The grain and oilseed complex firmed over the course of Wednesday morning, with soybeans even climbing back above unchanged. Much of the support for commodities in general came from the weaker U.S. dollar, as the U.S. dollar index continues to fall. Gold posted the strongest rally, up almost $15.

Other Markets:

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

Corn:

Corn extended its overnight rally to finish the session near its highs. Given it's a Wednesday, larger trading ranges aren't a surprise and could continue to be seen as the day session progresses. Futures spreads were generally flat overnight, indicating most of the support came from noncommercial short-covering likely tied to the weaker U.S. dollar. Keep an eye on these spreads as the day goes on to see if commercial traders start to show interest. USDA announced a sale of 125,000 tons of 2017-2018corn to unknown destinations

Soybeans:

Soybeans were able to erase an early loss, moving from an overnight loss of 6 cents to a gain of a penny shortly before the end of the overnight session. Support came from the weakening U.S. dollar, with initial buying tied to noncommercial traders while commercial interests could enter the fray during the day session. Traders will also keep an eye on South American weather, meaning additional support could come from Argentina via soybean meal. USDA announced a sale of 132,000 tons of 2017-2018 soybean meal to the Philippines.

Wheat:

The wheat complex finished the overnight session higher, supported by the weaker U.S. dollar index. As with corn and soybeans, buying interest came from the noncommercial side of markets. It will be interesting to see if commercial activity picks up as the day session progresses. Traders will continue to monitor weather across the U.S. winter wheat growing areas, though it remains too early to project how much damage may or may not have been done to crops.

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

FollowDarin on Twitter @DarinNewsom

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