A slightly higher start is indicated this am, up 3-4 in wheat, 1-2 in corn and beans. The $ is weak this am, supporting most commodities markets. Gold and crude oil are posting good gains so far this am. There will probably be a lot of evening up today, especially in the latter part of the session, ahead of tomorrow's big USDA report. Traders also expect a repeat late today of the closing minutes of trading Friday, when index funds were large, aggressive buyers in most pits, pushing prices to new highs for the day in some cases.

This Thursday the Commodity Futures Trading Commission is expected to announce its decision regarding position limits in some markets, such as energy (crude oil) and metals. It would be negative for grains if index funds are subjected to position limits. The index funds, which are always long, need to keep a certain percentage of their money in each commodity to keep their portfolio balanced. If position limits restricts fund buying in particular markets, they can't expand their long positions in any markets including in the grains or their percentage would become unbalanced.

It was a mostly dry weekend in Argentina but up to 1.5" of scattered rain is forecast today-tomorrow before dry weather returns Wed-Sun. Up to 1.5" of fairly widespread rain fell in Brazil over the weekend. More of the same is expected all this week.

There is a lot going on this week which should make for interesting trading opportunities.