A mixed start appears likely this am, roughly 1-2 lower wheat, 2-3 higher corn and 5 down in beans. Followthrough selling was seen in beans overnight due to fears China's tighter monetary policy will slowdown their bean import demand. The $ is falling this am and if this continues the opening could be higher in corn than currently expected with wheat and beans closer to steady so keep watching the $ as we get closer to the grains opening for last minute guidance.

Deliveries this am were 1000 beans, 2500 oil and 0 meal.

The index fund rebalancing (buying) is expected to start in earnest late in the session today and this could cause a lot of shortcovering later in the session, especially in corn. Many traders think there will be a late rally in most pits as a result of this fund buying, which could cause sellers to withdraw from the market late and encourage buyers.

Argentina will be mostly dry the next 3-4 days but scattered rain is forecast to return late Monday into Tuesday, bringing up to 1.5" of moisture. There was scattered rain in northern Brazil the last 24 hours and more of the same is predicted the next 7 days with up to 1.5" forecast the next 3 days alone. Rain is forecast in southern Brazil Sat-Thur with up to 1.5" forecast. Overall conditions in South America remain very favorable.