DTN Before The Bell Grain Comments

Morning CME Globex Update:

March corn is up 1 1/4 cents, January soybeans are down 1 cent, and March Chicago wheat is up 3/4 cent. At 8 a.m., USDA announced that 190,000 metric tons (7.0 mb) of U.S. soybeans were sold to unknown destinations for 2015-16. The U.S. dollar index traded slightly above its 100-point mark early Wednesday with unconfirmed talk that Europe may be ready for another round of easing. Grains were mostly steady early with a Thanksgiving storm on the way.

Other Markets:

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

Corn:

March corn was moderately higher early Wednesday with weather currently clear over most of the U.S., but about to give way to a winter storm that will bring heavy rain to the southeastern Plains and Midwest, ice and snow to the western and central Plains. There is a flash flood watch in Oklahoma and Missouri and a winter storm watch in eastern Nebraska and western Iowa. Nevertheless, none of this is likely to rock corn prices much as harvest is mostly done and producers have been through this before. March corn remains under bearish pressure, but is doing well to hold above the November low of $3.64 1/4 with increased help from commercial buyers at these cheap prices. DTN's National Corn Index closed at $3.44 Tuesday, below the 200-day average and priced 20 cents below the December contract. In outside markets, the U.S. dollar index is up .50 with unconfirmed talk that the European Central Bank is considering more monetary easing.

Soybeans:

At 8 a.m., USDA announced that 190,000 metric tons (7.0 mb) of U.S. soybeans were sold to unknown destinations for 2015-16. Before the announcement, January soybeans were slightly lower early Wednesday, still quietly holding a small gain for the week with lots of unanswered questions ahead. This week's election of a new leader in Argentina has raised concerns of increased soybean supplies coming to market sometime in 2016. Also, soybean planting in Brazil is making slow progress, but is expected to find help from scattered showers this weekend in Mato Grosso. January soybeans remain under bearish pressure while China has been restrained in its purchases of U.S. soybeans so far in 2015-16. U.S. soybeans, however, are the cheaper choice at this time, a factor that should help U.S. exports ahead. DTN's National Soybean Index closed at $8.19 Tuesday, below the 200-day average and priced 45 cents below the November contract.

Wheat:

March Chicago wheat is slightly higher early Wednesday, not fazed by the flash flood watch for Oklahoma and Missouri that is expected to see nearly nine inches of rain in southeastern Oklahoma. Of course, apart from the flooding, most the moisture from this week's storm will be beneficial for the winter wheat crops as the lights go dim in the northern Hemisphere. Outside of the U.S., the weather in Australia is favorably dry for harvest, but there is still room for modest reduction in USDA's estimate of 26.0 mmt. In spite of well-known bearish fundamentals, March Chicago wheat continues to trade sideways with the benefit of active commercial support below $5.00. DTN's National SRW Wheat Index contract closed at $4.42 Tuesday, below the 200-day average and 43 cents below the December contract.

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

FollowTodd on Twitter @ToddHultman1

(KA)

Copyright 2015 DTN/The Progressive Farmer. All rights reserved.