A slightly higher start is indicated this am by overnight gains, roughly 2-4 wheat and corn, 4-5 beans. The $, the main driver of yesterday's sharply lower market, is just slightly higher currently this am, not providing any strong direction for the grains. Traders will continue watching the $ for guidance throughout the session. Depending on what the $ is doing around the grains opening it might provide strong direction at that time.

Informa will estimate the size of the 2009 US harvest and acreage for 2010 at 10:30 this am. These numbers shouldn't have a major impact on prices but they could have some influence so I will relay them to you as soon as I see them.

The USDA attache in Beijiang cut his Chinese wheat crop guess for 09-10 to 106 million tonnes and his corn guess to 150 million. Attache estimates aren't official USDA estimates. The latest official USDA numbers are 114.5 million tonnes for wheat and 155 million for corn. The next USDA Chinese crop estimate will be Jan 12. The USDA just announced the sale of 116,000 tonnes of US beans to China but for the 2010-11 crop year, not this crop year (2009-10). The 2010-11 crop year starts Sep 1, 2010.

Brazil was mostly dry yesterday in the south and more dry weather is forecast today-Saturday. Light rain is forecast Sun-Wed in Rio Grande state but Parana state is expected to stay dry. Northern Brazil will see scattered rain today-Monday. The dry period in the south will be welcome, as will the wet weather in the north. Argentina saw up to 1" scattered rain overnight in Buenos Aires province. Dry weather was the rule elsewhere. U p to 1.5" widespread rain is expected today-Sunday. More beneficial rain is possible Tue or Wed.

The Midwest was generally dry the last 24 hours. Light, scattered snow is forecast the next few days. Heavier precipitation in the form of rain or snow is predicted Tue-Wed in the west, Wed-Thur in the east. This could again delay the end of corn harvesting in parts of the Midwest.