A mixed start is indicated this am, steady/easier wheat, 1-3 lower corn and 1 better beans. The $ is a little higher currently, a slightly negative influence for all the grains.

Informa will release its US and world supply/demand estimates at 10:30 US Central time this morning, which could modestly influence the market.

The Obama administration is expected to outline its policy for biofuels and the EPA is expected to announce a revised Renewable Fuel Standard, dubbed RFS2, as soon as today. More dependence on biofuels is expected to be encouraged, which is long term bullish for bean oil and corn. However, until Congress renews the $1 a gallon subsidy for biodiesel fuel, mostly made from bean oil, little increase is expected in demand for bean oil to make bio diesel fuel.

The long overdue technical correction finally was seen yesterday. If the market can consolidate or, better yet, add additional gains today, then there is a good chance a bottom has finally been made and prices could work higher from here, at least in the short term. Of course, the fundamentals remain bearish for the longer term picture but that doesn't mean prices can't work higher in the short term.

Brazil has turned hotter and drier and this pattern is expected to continue through at least Monday. If this hot and dry weather extends well beyond that, it could stress the corn and beans but for now conditions remain very favorable. Argentina saw up to 1.25" of welcome rain the last 24 hours in much of the grain belt with the major exception of Cordoba province. More welcome rain is predicted today-Friday with up to 1.5" forecast. Additional rain is forecast this weekend, all of which will be helpful.