A slightly better start is likely this am, 1-3 higher wheat, corn and beans, following similar overnight gains. Crude oil and the equity markets are lower but the $ index is slightly lower also, presenting mixed signals to the grain market. It is the last day of the week and month so following yesterday's major gains in most pits, we could see a day of consolidation as the market fully digests these big gains. For now, I would give the bulls the benefit of the doubt and stick with the long side, at least in most pits, as there is little fresh bullish or bearish news.

Taiwan passed on their tender for 40-60,000 tonnes of US/Brazilian beans due to high prices. China will attempt to auction 500,000 tonnes of beans Aug 5 but unless they lower their price or offer subsidies to their processors, it is unlikely they will sell any beans, as was the case the last two auctions. China has had much more success auctioning corn and they will offer 2 million tonnes again Aug 4. There were no bean or meal deliveries this am, first notice day, as expected. Oil deliveries reached 3990 with the delivery date July 30. There were no big commercial stoppers.

The Indian monsoon is weakening again with hotter temps returning. This could increase stress on the crops unless the monsoon rains revive soon. Only light, scattered weekend rain is forecast for the western half of the Midwest (west of the Mississippi River) with continued cool temps. Light rain is predicted the first half of next week, favoring northern and eastern parts of the west. The eastern Midwest (east of the Mississippi River) had up to 1.5" of rain in the south, up to .4" in the north the last 24 hours. Light rain is possible tomorrow and Monday. The 6-10 day calls for below normal rain in the northwest part of the midwest, above normal rain in the southeast part. ---Vic Lespinasse