A lower start is expected in all pits this am following renewed worldwide economic worries. China's Shangai equity market fell sharply today and this bearish influence is reverberating through all equity and commodity markets as the day continues around the world. Crude oil is lower and the $ index is a little higher, encouraging selling in the grains. Malaysian palm oil fell 76 ringgit today, another victim of worldwide economic worries.The early call is roughly 1-2 down in wheat, 2-4 off in corn and 12-15 lower in beans.

Egypt is in the market for wheat today and results should be known shortly before our grain opening. Depending on what Egypt does, this could influence the direction of our wheat market this am. The important Canadian grain growing province of Alberta is reportedly 2-4 weeks behind normal in development, meaning an extended growing season is needed to ensure crops there reach their full potential. Even a normal first freeze date could do considerable damage to late developing crops.

Reports from the Pro Farmer Crop Tour of the Midwest continue coming in. As expected, conditions are much better in the west than in the east. For example, Nebraska corn yields were estimated at almost 159 bushels per acre, way above the 3 year tour average of 141.5 but Indiana corn yields were put at 157.3, only modestly above the 3 year average of 154.1.

Monsoon rains remain spotty in India, continuing to stress some of the crops there. Beneficial rain fell in parts of China's main grain growing regions yesterday and more is forecast today-tomorrow, which will also be very welcome. The US Midwest was generally dry yesterday but welcome rain is predicted today and tomorrow, up to 1.5" across much of the belt, followed by mostly dry weather Fri-Sun. ---Vic Lespinasse