Ahead of the what will probably be the main event of the day, the USDA report: the $ is steady but crude oil and gold are lower, a negative combination overall for the grains. Corn open interest jumped 30,000 contracts yesterday with index funds estimated late buyers of over 7000. They were also buyers of roughly 2500 beans, whose open interest jumped about 6000. Traders expect more late session index fund buying today through Thursday in wheat, corn, beans and oil. Prices were lower in all the grains overnight but this means little ahead of the USDA report. I will update my comments as soon as I have a chance to examine the USDA numbers, due out starting at 7:30 am, central time.

Argentina saw up to 1.75" of scattered rain in the main growing areas the last 24 hours and lingering showers are forecast today before dry weather moves in Wed-Sun. Brazil saw up to 1.5" of scattered rain in the main growing areas yesterday with the exception of Rio Grande state in the south, which was dry. Widespread rain is forecast the rest of the week in the northern growing areas with more rain forecast in the south today-tomorrow. Up to 1.5" is forecast. Overall, conditions for bumper crops remain in place in both Argentina and Brazil, one of the main reasons for the sell off over the last week in our bean market.