DTN Early Word Grains

6:00 a.m. CME Globex:

March corn was 1/4 cent lower, March soybeans were 1 cent higher, and March Chicago wheat was 1 1/4 cents higher.

CME Globex Recap:

Grains were steady to higher early Friday with a calmer outside market environment than what was seen on Thursday night. Palm oil and soybean oil prices continue to trade higher on signs of increased demand. March crude oil is up over 5%, finding ability to bounce near its January low.

OUTSIDE MARKETS:

The Dow Jones Industrial Average closed 254.56 points lower at 15,660.18, the NASDAQ Composite was down 16.75 points at 4,266.84, and the S&P 500 fell 22.78 to close at 1,829.08 Wednesday. DJIA futures were 160 points higher overnight. The Nikkei 225 index was down 4.8%. European markets were higher with London's FTSE 100 up 68 points (1.2%). The U.S. dollar index was 0.16 higher at 95.72. Crude oil was up $1.15 at $27.36 while Brent crude was up $1.32 to $31.37. April gold was $4.40 lower at $1,243.30. Malaysian palm oil futures were up 1.7%.

	BULL		BEAR
1)	U.S. corn prices are cheap enough to be competitive again vs. Brazil.	1)	Nearly every adjustment in USDA's February WASDE report was bearish for grains.
2)	In spite of bearish outlooks, row crop prices have held above January's lows, so far.	2)	USDA's crop estimates for South America point to large upcoming corn and soybean harvests.
3)	February's lower U.S. dollar index takes some bearish pressure off of grain prices.	3)	U.S. ending wheat stocks are at their highest level in six years.

See Grain Archives for more information on the fundamental situation in grains. See the DTN Ag Weather Brief for complete market weather comments.

MORE COMMODITY-SPECIFIC COMMENTS

CORN March corn was slightly lower in quiet overnight trading. Japan's stocks took another tumble, but European and U.S. futures are moderately higher, taking some of the edge off of investors' concerns. The weather in Argentina has been drier this week and there are chances for scattered showers on Saturday. However, crop concerns are only slight as high temperatures have stayed in the 80s. March corn continues to travel a narrow, sideways path with big expected harvests ahead in Brazil and Argentina.

SOYBEANS March soybeans were moderately higher early Friday, continuing to mostly ignore the favorable reports of crop conditions in South America. March soybean oil is higher again early Friday after April palm oil closed up 1.7% overnight. The vegetable oil market is one bright spot in the world of grains that has been seeing higher prices from increased demand and that is helping soybeans to maintain their sideways tone. Soybeans remain under bearish pressure, but have been helped by support from the commercial sector.

WHEAT Winter wheat contracts were a little higher early Friday, once again helped by willing bargain hunters enticed by prices near their contract lows. As bearish as the outlook is for wheat with an estimate of U.S. ending stocks near one billion bushels, it is difficult for the market to take prices much lower and that should sound alarms for bearish investors showing heavy short positions. There is nothing happening now to draw buyers into the market, but this spring could raise some concerns when we take a fresh look at this year's winter wheat crop. March Chicago wheat continues to trade roughly sideways and is holding above the January low of $4.56, thanks to domestic demand from the commercial sector.

DTN Cash	Change From	National	Contract	Change from
Commodity	Index	Prev Day	Avg. Basis	Month	Prev Day
Corn:	$3.37	$0.00	-$0.23	Mar	$0.002
Soybeans:	$8.26	$0.11	-$0.48	Mar	$0.001
SRW Wheat:	$4.18	-$0.02	-$0.40	Mar	$0.009
HRW Wheat:	$3.88	-$0.01	-$0.56	Mar	$0.002
HRS Wheat:	$4.61	$0.00	-$0.25	Mar	-$0.004

Todd Hultmancan be reached at todd.hultman@dtn.com

Toddcan be followed throughout the day at www.twitter.com\ToddHultman1

(CZ)

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