A higher start is expected in most pits this am following bullish signals from the outside markets with crude oil and equities higher while the $ is under considerable pressure. Early indications point to a 5-7 better start for wheat, 1-2 up in corn and 10 higher beans. Malaysian palm oil jumped 67 ringgit today, which could lend some early support to our bean oil market.

The USDA just announced the sale of 113,000 tonnes of US beans to China for the 2008-09 crop year, which ends Aug 31. This should lend good additional support to beans this am, especially Aug. I would stick with the long side today, except in the case of meal.

Rain is still forecast in the dry Argentine wheat belt early next week, where it is badly needed. Good growing weather continues in the main Chinese grain growing areas. Monsoon rains are forecast to increase over coming days in India, which would be very beneficial to crops there.

The US Midwest had scattered rains of up to 1" the last 24 hours and more scattered rain is forecast the next couple of days, followed by dry weather in much of the belt over the weekend. Temps are predicted to turn cool within a day or two. The 6-10 day calls for cool temps with below normal rain in the western half of the belt, above normal rain in the eastern half. The Delta had up to 3/4" scattered rain the last 24 hours. Up to 1.5" more is predicted today through Friday, which will be welcome. The 6-10 day calls for cool temps and normal rain. It has been a relatively cool summer so far in the Midwest. Cool temps result in a lack of heat stress for developing crops and often are associated with above normal yields. 1994 was a summer of cool temps with record yields for both corn and beans in the Midwest, records that lasted for years afterward. Cool temps this summer could also give yields a boost, even though fertilizer use has been reduced due to high prices. High yields would, of course, be bearish for prices. ---Vic Lespinasse