A mixed start is indicated this am, roughly 1 better wheat, 1-2 lower corn and 6-10 higher beans. The outside markets are not offering a strong sense of direction for the grains this am with the $ higher, which is negative for the grains, while crude oil and equity markets are also higher, which is supportive for the grains.

2300 oil was delivered this am but once again there were no bean or meal deliveries, as expected. China will hold another 2 million tonne corn auction Aug 11 and a 500,000 tonne bean auction the next day. The government announced they will subsize corn processors in the major corn growing areas through November, which should boost the amount of corn sold at auction. No subsidy for bean crushers was announced but this will probably happen soon. This should sharply increase the amount of beans sold at auction, which has been almost nothing so far.

The Indian Meteorological Dep't said continued poor monsoon rains will probably continue the next 5 days. Some light, scattered rain is forecast in the bean belt of central India the first half of next week, however.

The US Midwest will see up to 3/4" light, scattered rain today. A mostly dry weekend is predicted along with much hotter temps. Rain is expected to return early next week, up to 1.5", before drier conditions occur again mid-week. The hot temps are only forecast to be in place a few days, not long enough to cause any stress to the developing corn or bean crops. ---Vic Lespinasse