DTN Before The Bell Grain Comments

Morning CME Globex Update:

March corn was down 1/2 cent, March soybeans were up 1 cent, and March Chicago wheat was down 1 cent. The U.S. dollar index is higher early Friday after the Labor Department reported the lowest unemployment rate in eight years, but grains are mixed, still holding roughly sideways after a quiet overnight session.

Other Markets:

Dow Jones:	Higher
U.S. Dollar Index:	Lower
Gold:	Lower
Crude Oil:	Lower

Corn:

March corn was slightly lower early after posting just a 1 1/2 cent range overnight. Outside markets were mixed overnight with both the U.S. dollar index and crude oil up a little before the Labor Department reported at 7:30 a.m. that January posted the lowest unemployment rate in eight years. Friday's weather map shows scattered patches of snow falling in the western Plains, but decent travel has been restored and temperatures will be mild into the weekend, favorable for moving grain for those that are so inclined. While U.S. corn exports are down 22% from a year ago, corn sales have picked up lately, thanks to U.S. gulf prices that are now cheaper than those for Brazil. This improvement is helping March corn keep a sideways tone, but so far, there is still no bullish argument for higher prices in view. DTN's National Corn Index closed at $3.45 Thursday, below the 200-day average and priced 23 cents below the March contract. In outside markets, the U.S. dollar index is up .45 after the U.S. Labor Department said that the unemployment rate fell from 5.0% to 4.9% in January while non-farm payrolls were up 151,000, less than expected.

Soybeans:

March soybeans were slightly higher early Friday, still keeping inside a narrow sideways range for over three weeks. DTN's five-day forecast expects light scattered showers for Brazil, favorable for harvest progress in the northern growing areas. Argentina will remain mostly dry until Sunday when increased chances for rain are expected to benefit crop conditions into early next week. With generally favorable conditions hanging on in South America and encouraging China to delay their purchases, March soybeans remain under bearish pressure. DTN's National Soybean Index closed at $8.27 Thursday, still below the 200-day average and priced 47 cents below the March contract.

Wheat:

March Chicago wheat was slightly lower with a narrow, overnight range and is showing little response to Friday's U.S. unemployment report. Back in the world of wheat, U.S. supplies remain heavy and exports are slow. There is a good chance that some winter damage will emerge this spring in the U.S., Ukraine, and Russia, but it is still too early for traders to take these things seriously and the overall damage may not be significant if this spring's weather is favorable. Until the market knows more, there is no bullish fundamental argument for wheat, but prices are cheap enough to hold their sideways range with active commercial support. DTN's National SRW Wheat Index contract closed at $4.31 Thursday, below the 200-day average and 41 cents below the March contract.

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

FollowTodd on Twitter @ToddHultman1

(KA)

Copyright 2016 DTN/The Progressive Farmer. All rights reserved.