A higher start is expected across the floor this am, roughly 7-10 in wheat, 3-5 corn and 15-20 beans. The outside markets are all supportive for the grains this am with crude oil and equities up while the $ index is down.

Deliveries were 0 again this am for corn, beans and meal and likely to stay this way in beans and meal for days or even until the Jul goes off the board Jul 14. This means bull spreaders of Jul in beans and meal have little to fear currently about getting delivery, making them more inclined to stick with their long positions in Jul either on an outright or spread basis. There were deliveries in wheat of 5300, and oil of 5700, where ADM put out 680 on delivery.

Chinese traders say they think China will release some corn from its huge stockpile as early as next week to cool off rising domestic corn prices.

Australia's Bureau of Meteorology is now saying an el nino weather pattern is very likely to be declared officially in a matter of weeks. This could cause a drought to develop in Australian wheat areas and severly reduce the size of the crop, currently expected around 21-23 million tonnes. The Indian monsoon has once again slowed in its northwest advance across the country, heightening fears for Indian crop production this year as roughly 60% of Indian crops are dependent on good monsoon rains.

The US southwest winter wheat belt is enjoying generally favorable harvest weather but up to 1.5" rain is forecast Sat-Mon which could once again disrupt harvesting. The Midwest will see light, scattered rain the next several days into early next week with normal to below temps. Warmer and wetter weather is forecast for the western half of the belt in the latest 6-10 day while the eastern half of the belt will see cooler temps and below normal temps. Either way, weather still appears favorable for Midwestern crops.

Remember, starting this am electronic overnight trading stays open until 7:15am, not 6am. Times are US Central.---Vic Lespinasse