Overnight, the corn market closed higher again as wheat was higher and dragged corn higher. The corn market closed about 2-3 cents higher which was near the highs of the session. There isn’t any new news this morning as the wheat is still the topic of conversation and what everybody is talking about and driving corn prices higher. It seems like a broken record, but that is the only news. There were headlines in international papers again today about the drought in Russia and the affect on not only people, but on the crops and animals. This international exposure is causing traders to cover shorts and to buy wheat. Today is also the end of the week and end of the month which could bring about fund activity as they position themselves. The weather remains pretty good across the heart of the Midwest as the warmer temps is accompanied with rains. The southern plains and Delta is going to have extreme heat this weekend and next week, which could have a big affect on animals, but a minimal affect on grains as many are starting harvest. The corn market will be called higher this morning inline with the overnight close, but watch wheat. The outside markets are slightly negative, but those markets have gone largely ignored by the grains lately.

Globex Overnight Contract Last Net Change High Low Volume ZCU10 381^6 2^4 382^6 378^2 1814 ZCZ10 396^2 2^4 397^0 393^0 6782 ZCH11 409^4 3^0 410^0 405^6 313

Early Opening Calls: 2-3 cents better

Top News -- Official EU data shows 39,000 mt of Barley were granted export licenses. The marketing year to date total is 367,000 mt compared to last year's 145,000 mt at the same point -- Spain's ag ministry now estimates winter grains harvest rising slightly to 15.56 mln mt from the 15.48 mln mt previously expected. -- On Friday, the United Grain Comp, a grain trading firm for the Russian gov't said their plans to export nothing less than 1 mln mt of grain this year is still a target. -- EIA reports May US ethanol production at 1.10 billion gallons, unch from March '10 production, but up 1.7% from April's daily production rate -- EIA reports May US ethanol in storage at 828.3 million gallons, little changed from April and March levels -- Analysts estimate the US ethanol industry consumed 393 million bushels of corn in May, up 26.4% from 2009 levels -- AUGUST 2010 ETHANOL FUTURES 7/29/10 : 0 contracts -- AUGUST 2010 DISTILLERS DRIED GRAIN FUTURES 7/29/10 : 0 contracts -- Pending Tender: 20-25,000 mt of US, Latam, S Africa, or Canadian Corn is being tendered for by Abu Dhabi in a tender that closes today. Shipment for LH Sept to FH Oct -- Pending Tender: Cyprus seeking 60,000 mt of opt origin Barley, with an option for 12,000 mt additional, in a tender that closes on Monday, July 26. Shipment is expected between Sept 15 to Feb 10, 2011 -- Dalian Jan. Corn futures were down -8 @ 1,927 yuan/mt. -- Liffe Aug. Corn futures were up +2.00 @ 185.00 euros/mt., as Nov. was up +3.00 @ 176.00 euros/mt. -- Globex Corn Vol: 235,966; Pit Vol: 11,967; Open Interest change: - 1,855 -- Weather: 6-10 Day Forecast: Above Normal Temps. Normal to Above Precip. -- Outside markets: Energy Complex -0.77 at $77.59; Gold & Silver: +3.7 at $1173.5 & +0.313 at $17.930; US $ +0.041 at $81.795

Cash Markets -- CIF Corn steady. July +27 to +32, Aug. +29 to +35, Sept. +47 to +50, Oct. +48 to +51, Nov. +48 to +52, Dec. +53 to +55, Jan. +41 to +45

TREND:

Corn is still under performing but this market is starting to look like it has value to feed demand as alternatives are bid up. Demand is improving but the interest is for 2yc and the supply is mainly something less. There continues a 30 to 40 cent premium for 2yc in both the PNW and the Gulf. Corn loading in the Tex gulf has gotten in the way of a developing wheat program? Continue to look for corn flat price to become more dynamic. Takes a close over 4.00 in CZ to get the trade started again. A close over 4.10 would put in place a move to 4.45. If yields come in less than 165 bpa at year end, corn could make a very hard upside move to ration usage. Note hogs up more than corn and meal today so margins remain good. Not so good for cattle? Look for this market to hold small breaks and 3.80 corn is looking as a distant support level with a lot of users wanting a big break to take on coverage. Usually does not happen that way when every one is waiting for the opportunity?

Futures trading involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future trading results. Trading commentary and analysis is based on information taken from trade and statistical services, news services, and other sources which we believe to be reliable. We do NOT warrant that such information is accurate or complete, and it should NOT be relied upon as such. Our policy is to publish market research that is objective, clear, fair, and not misleading. Trading commentary and analysis reflects our good faith judgment at a specific time and is subject to change without notice. There is no assurance that the advice we give will result in profitable trades. All trading decisions will be made on a strictly unsolicited basis by the account holder.

Opening Call: higher. The $USD is trading slightly higher today. Equities weaker and crude oil is $1.21 lower. Today is the last trading day of the month and traders expect fund volume to pick up. Today is the beginning of deliveries for the August contract. 3,014 Bean Oil Deliveries market was looking for 4-5K No bean or meal deliveries. 6 to 10 day forecasts continue to call for above to much above normal temps with adequate to above average rainfall for most of the central/northern portions. Little change from the extreme heat and drought is seen in the Russia, Kazakh and east Ukraine crop regions over the next 10 days. However, there are some light and isolated showers possible and slightly higher humidity. Rainfall totals will continue to be well below normal and temperatures well above normal for the next week to 10-days. Maintain length in the bean complex and add on a break in sx at 979 and risk a close below 965. add to length on a close over 992 ¾.

Opening Call: Soybeans 5 to 7 cents higher, Oil .05 to .10 higher and Meal $2.00 to $4.00 higher.

Top News -- Spain's ag ministry now estimates winter grains harvest rising slightly to 15.56 mln mt from the 15.48 mln mt previously expected. -- On Friday, the United Grain Comp, a grain trading firm for the Russian gov't said their plans to export nothing less than 1 mln mt of grain this year is still a target. -- EIA reports May US ethanol production at 1.10 billion gallons, unch from March '10 production, but up 1.7% from April's daily production rate -- EIA reports May US ethanol in storage at 828.3 million gallons, little changed from April and March levels -- AUGUST 2010 SOYBEAN FUTURES 7/29/10 : 0 contracts -- AUGUST 2010 SOYBEAN OIL FUTURES 7/29/10 : 3014 contracts -- AUGUST 2010 SOYBEAN MEAL FUTURES 7/29/10 : 0 contracts -- Dalian May Soybean futures were up +27 @ 3,975 yuan/mt., and Jan. Soymeal futures were up +34 @ 2,949 yuan/mt. -- Dalian Jan. Palm Oil futures were up +50 @ 6,758 yuan/mt., Jan Soyoil was up +50 @ 7,706 yuan/mt. -- Malaysian Oct. Palm Oil futures were up +10 @ 2,524 ringgit/mt., range overnight was 2,539 to 2,520. -- Liffe Aug. Rapeseed futures were up +4.00 @ 367.00 euros/mt., as Nov. was also up +4.00 @ 366.75 euros/mt. -- Globex Soybean Vol. 102,846; Pit Vol. 10,299; Open Interest Change: - 836 -- Weather: 6-10 Day Forecast: Above Normal Temps. Normal to Above Precip. -- Outside markets: Energy Complex -0.77 at $77.59; Gold & Silver: +3.7 at $1173.5 & +0.313 at $17.930; US $ +0.041 at $81.795

Cash Markets -- CIF Soybeans steady. July +80 to +85, FH Aug. +80 to +90 , Aug. +78 to +83, Sept. +80 to +90, Oct. +74 to +78, Nov. +76 to +78, Dec. +72 to +75, Jan. +75 to +77

Overnight, the corn market continued to move higher as wheat leads the way and we are seeing more liquidation. The December contract closed up about 5 cents higher near the highs of the session. The outside markets were supportive with the US$ down over 50 points and the stock market higher. The weekly export sales remain good at 960,000 mt which was within expectations but will show the market the world is on notice and buying US corn. The story remains the weather problems in FSU and the EU which are driving wheat and all the other feed grains. There are big wheat inventories across the world, so this shortage could really support corn because it doesn’t have big carryout across the world. The corn market is still finding plenty of farmer selling as corn goes higher as they are looking at the big US crop and not the world situation. The December contract is approaching the psychological $4 level again and we will see if it can close above that level. The corn market will be called 5-7 higher this morning because of good corn and wheat export sales. Wheat is the driver right now, but corn could be explosive. There are some weak shorts in corn that sold because of the good weather in the US and those will the first to exit this market if they haven’t already. Be careful staying short corn, or make friends with your banker.

Globex Overnight Contract Last Net Change High Low Volume ZCU10 381^6 5^4 382^2 375^4 5736 ZCZ10 396^2 5^4 396^4 390^0 15598 ZCH11 409^2 5^6 409^2 403^0 2483

Early Opening Calls: 5-7 cents better

Top News **USDA Corn 09/10 Export Sales Net: 432,300 mt; 10/11 Net: 528,100 mt; expected 750k-1.1 mln mt -- 20-25,000 mt of US, Latam, S Africa, or Canadian Corn is being tendered for by Abu Dhabi in a tender that closes today. Shipment for LH Sept to FH Oct -- Kellogg reported 2Q revenue at $3.06 billion, while net income for the quarter was reported at $302 million or 79c/share. The cereal maker noted income was impacted by the recall and lowered 2010 guidance -- CME Group on Thursday announced 2Q revenue of $814 million and net income on a per share basis of $4.11/shr. Operating margin during the quarter was 63% -- US Coast Guard says efforts to remove stricken barge north of Memphis on the Mississippi River continues and so does the one-way traffic restriction -- Bunge Ltd posted 2Q revenues of $10.9 billion and net income during the quarter totaling $1.79 billion or $11.15/share. They noted worldwide crush as challenging and noted wheat millers were still under pressure -- Romania's farm ministry says 75% of the grain crop has been harvested, but notes precip & flooding have reduced yields. They estimate 4.4 mln mt of grain has been harvested so far, they're expecting a total of 5.8 mln mt for the season -- Pending Tender: Cyprus seeking 60,000 mt of opt origin Barley, with an option for 12,000 mt additional, in a tender that closes on Monday, July 26. Shipment is expected between Sept 15 to Feb 10, 2011 -- Dalian Jan corn futures were 1 yuan better at 1,935 yuan/mt. -- Liffe Nov corn futures were off -0.25 euro at 174.50 euros/mt. -- Globex Corn Vol: 231,392; Pit Vol: 14,699; Open Interest change: - 3,542 -- Weather: 6-10 Day Forecast: Above Normal Temps. Above Normal Precip. -- Outside markets: Energy Complex -0.18 at $76.81; Gold & Silver: +1.3 at $1162.3 & +0.099 at $17.540; US $ -0.480 at $81.830

Cash Markets -- CIF Corn steady off 3. July +27 to +33, Aug. +29 to +35, Sept. +47 to +50, Oct. +48 to +51, Nov. +49 to +52, Dec. +53 to +55, Jan. +41 to +45

TREND:

Tightening world feed grain supplies is in the making and this is an interesting offset to the US situation with growing crop size and pending harvest starting in the south already and spreading to the north over the coming 3 to 4 weeks. Lot of the corn crop is already heading into dent which makes it harder to hurt yields from this point forward. The US farmer is still in a selling mood even if the activity has slowed from the levels seen last week. Triggered sell stops last week when it broke below the 3.85 reactionary low. It only spent two days there holding the Fib retracements and the 50 day moving avg. This chart is still based primarily on the huge reaction off the June acreage and stocks report. The roll over takes this chart to a test of 4.43 if and when it gets above the July highs at 4.10. The actual count off this big leg takes the market to 4.60?

The new crop carries have widened as the crop grew but now has firmed some on stronger new crop corn basis and concern that exports could grow more than supply.

Futures trading involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future trading results. Trading commentary and analysis is based on information taken from trade and statistical services, news services, and other sources which we believe to be reliable. We do NOT warrant that such information is accurate or complete, and it should NOT be relied upon as such. Our policy is to publish market research that is objective, clear, fair, and not misleading. Trading commentary and analysis reflects our good faith judgment at a specific time and is subject to change without notice. There is no assurance that the advice we give will result in profitable trades. All trading decisions will be made on a strictly unsolicited basis by the account holder.

Opening Call firmer. A sharply lower $USD has traders attention this morning with it trading 60 pts lower and the Euro trading to an 11 week high. Weekly export sales figures released by the USDA continue to impress the market. They announced sales of Beans for old crop 339K new crop 1.14 million well above the expected 700K-1.25 mil. Overnight markets are firmer once again as soybeans maintain strength from unfavorable European growing conditions because of damage to rapeseed crops. Weather remains hot for the next 6 to 10 days however abundant rainfall is also predicted for most of the Midwest with expectations for above average rainfall. Look to maintain length and add to long positions on a break to 974 SX. Overnight Chinese Soybeans, Meal and Oil closed higher.

Opening Call: Soybeans 6 to 8 cents higher, Oil .05 to .10 higher and Meal $2.00 to $3.00 higher.

Top News **USDA Soybeans 09/10 Export Sales Net: 339,000 mt; 10/11 Net: 1.114 mln mt; expected 750k-1.2 mln mt **USDA Soybean Meal 09/10 Export Sales Net: 23,800 mt; 10/11 Export Sales Net: 43,000 mt; expected 75k-175k mt **USDA Soybean Oil 09/10 Export Sales Net: 3,200 mt; 10/11 Export Sales Net: 4,300 mt; expected 30k-50k mt **US Census June Mill and Warehouse stockpiles of Soyoil pegged at 3.555 bln lbs -- CME Group on Thursday announced 2Q revenue of $814 million and net income on a per share basis of $4.11/shr. Operating margin during the quarter was 63% -- US Coast Guard says efforts to remove stricken barge north of Memphis on the Mississppi River continues and so does the one-way traffic restriction -- Bunge Ltd posted 2Q revenues of $10.9 billion and net income during the quarter totaling $1.79 billion or $11.15/share. They noted worldwide crush as challenging and noted wheat millers were still under pressure -- Kellogg reported 2Q revenue at $3.06 billion, while net income for the quarter was reported at $302 million or 79c/share. The cereal maker noted income was impacted by the recall and lowered 2010 guidance -- Dalian May soybean futures were 17 yuan better at 3,948 yuan/mt; May soymeal were 27 yuan better at 2,915 yuan/mt; Jan soyoil were 68 yuan better at 7,656 yuan/mt. -- Dalian Jan palm oil futures were 100 yuan better at 6,708 yuan/mt. -- Liffe Nov rapeseed futures were +3.00 euro better at 363.00 euros/mt. -- Globex Soybean Vol. 100,542; Pit Vol. 8,854; Open Interest Change: - 3,998 -- Weather: 6-10 Day Forecast: Above Normal Temps. Above Normal Precip. -- Outside markets: Energy Complex -0.18 at $76.81; Gold & Silver: +1.3 at $1162.3 & +0.099 at $17.540; US $ -0.480 at $81.830

Cash Markets -- CIF Soybeans steady up 2. July +80 to +85, FH Aug. +80 to +95 , Aug. +78 to +83, Sept. +80 to +90, Oct. +74 to +78, Nov. +76 to +78, Dec. +72 to +75, Jan. +73 to +77

Opening call higher. USDA reports private sale of 120,000 mt US Soybeans to China for the 10/11 MY. Overnight markets are firmer on talk that Russia may export only half the grain they did last year due to drought. Rumors of Russia issuing export restrictions were rampant yesterday but the Russian Ag. Ministry said it has not sent any grain export restriction proposals to the government. Their production consists mostly of wheat but the crops there and in Europe have suffered sharp losses due to severe drought. Analyst SovEcon said exports may drop by nearly half to 12 mmt. from 22 mmt. exported last year. The USDA will issue World crop production estimates on August 12th. Weather appears to be non threatening for soybeans in the current 6-10 day forecast. The forecast calls for above normal temperatures and above normal precip for central and northern growing areas. November Soybeans since posting highs July 16th. at 992 soybeans have lost 26 ½ cents as of yesterdays close. Some of the shorter term momentum indicators have turned negative however the longer term momentum indicators show positive upside momentum and point to the recent move as a corrective one rather than a new bear trend. Look to be a buyer of November Soybeans at 970 and risk a close below 960.

Opening call: Soybeans 7 to 10 cents higher, Meal $3.00 to $4.00 higher aond oil .15 to .25 higher.

Top News **USDA reports private sale of 120,000 mt US Soybeans to China for the 10/11 MY -- Vegoil Exec in India suggests imports of Soyoil between July and Oct will total 300-500,000 mt, while imports for the 09/10 MY will be in a range of 1.3 to 1.5 mln mt -- China's Commerce Ministry expects August soybean imports at 3.88 mln mt, down from July's expected 5.59 mln mt. The commerce ministry's July estimate is 3% below the CNGOIC estimate released earlier this week -- Chinese agency of economic planning warns businesses that are found to hoard grain their operations will be suspended for at least 3 years. -- Top shareholder, Suleiman Keimov, of Russian potash producer Uralkali is looking to take controlling stake in the largest Russian potash produer Silvinit, acc. to media reports. Kerimov is also reportedly looking at a stake in Belarus potash producer Balaruskali -- Dalian May Soybean futures were down -4 @ 3,931 yuan/mt., as May Soymeal was up +5 @ 2,888 yuan/mt. -- Dalian Jan. Palm Oil futures were up +16 @ 6,608 yuan/mt., as Jan. Soyoil was down -8 @ 7,588 yuan/mt. -- Malaysian Oct. Palm Oil futures traded +3 ringgit higher to 2,488 ringgit/mt., range onernight was 2,492 to 2,470. -- Crude Palm Oil cash markets in Malaysia traded 2,560 to 2,570 ringgit/mt. -- August delvery of Refined Palm Oil in Malaysia was quoted @ $842.50/mt., while August delivery of Palm Olein was quoted @ $847.50/mt. -- Liffe Aug. Rapesed futures were up +2.00 @ 356.75 euros/mt., and Nov. up + 2.75 @ 362.00 euros/mt. -- eCBOT Soybean Vol. 83,599; Pit Vol. 8,480; Open Interest Change: 5,319 -- 6-10 Day Forecast: Above Normal Temps. Above Normal Precip.

Cash Markets -- CIF Soybeans steady up 3. July +80 to +95, FH Aug. +80 to +95, Aug. +75 to +83, Sept. +80 to +85, Oct. +72 to +75, Nov. +75 to +79, Dec. +72 to +75, Jan. +72 to +75

Overnight, the corn market traded slightly higher most of the night until early this morning when wheat moved higher, corn followed. The December contract closed about 4-5 cents higher, near the high of the session. There isn’t any new news out on corn right now as wheat seems to be the leader. The only news I see is Russia is going to have reduced exports which should mean more corn usage for feed, but this has been in the media for 2 weeks. It was weird that the market rallied around 4am which is usually a time when new weather maps come out. The corn yield is up for debate as most of the market wants to talk about a big yield above trend line yields, but we are hearing reports of some corn looking great from the road, but the ears aren’t filling and pollination was aborted. The outside markets are quiet, if not slightly negative, but wheat is the story right now. The corn market will be called to open higher, just like yesterday morning, and then we will see where we close. The strong wheat market may chase some of the short corn positions and push corn higher. The USDA report in about 10 days will give traders the first indication of yields and a lot more information.

GLOBEX Overnight Contract Last Net Change High Low Volume ZCU10 367^4 4^6 369^0 362^2 7690 ZCZ10 381^4 4^4 383^4 376^4 12994 ZCH11 395^4 5^0 397^2 390^2 3196 ZCK11 404^0 5^2 404^0 398^4 97

Early Opening Calls:

Top News -- 6 genetically modified Corn varieties from Dow, Monsanto, DuPont, and sygenta have been approved by the European Commission for import as food & animal feed -- Chinese agency of economic planning warns businesses that are found to hoard grain their operations will be suspended for at least 3 years. -- Grain industry trade group in Ukraine said the gov't customs agency cancelled previous grain export controls today without any explanation -- US Coast Guard says the Mississippi River near Memphis is still being cleaned after hazardous spill but is now re opened to one way traffic -- Top shareholder, Suleiman Keimov, of Russian potash producer Uralkali is looking to take controlling stake in the largest Russian potash producer Silvinit, acc. to media reports. Kerimov is also reportedly looking at a stake in Belarus potash producer Balaruskali -- Pending Tender: Cyprus seeking 60,000 mt of opt origin Barley, with an option for 12,000 mt additional, in a tender that closes on Monday, July 26. Shipment is expected between Sept 15 to Feb 10, 2011 -- Dalian Jan. Corn futures traded up +3 @ 1,934 yuan/mt. -- eCBOT Corn Vol: 145,344; Pit Vol.: 145,344; Open Interest change: +3,791 -- 6-10 Day Forecast: Above Normal Temps. Above Normal Precip.

Cash Markets -- CIF Corn steady up 1. July +?? to +34, Aug. +?? to +36, Sept. +48 to +51, Oct. +49 to +52, Nov. +50 to +53, Dec. +53 to +56, Jan. +41 to +45

Futures trading involves substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future trading results. Trading commentary and analysis is based on information taken from trade and statistical services, news services, and other sources which we believe to be reliable. We do NOT warrant that such information is accurate or complete, and it should NOT be relied upon as such. Our policy is to publish market research that is objective, clear, fair, and not misleading. Trading commentary and analysis reflects our good faith judgment at a specific time and is subject to change without notice. There is no assurance that the advice we give will result in profitable trades. All trading decisions will be made on a strictly unsolicited basis by the account holder.

Overnight prices traded as much as 2 cents lower before turning around and closing 4 ¾ cents higher. Yesterday’s condition report showed Good & Excellent remained at 72%. It’s worth noting that while G&E was unchanged, the “Excellent” rating actually increased from 21% to 23%. This just means that 2% of the crop improved from Good to Excellent. The report also showed 84% silking vs. 52% yr ago and 70% 5 yr average, and 17% doughing vs. 7% yr ago and 13% 5 yr average. Corn shipments were 42.4 mil bu with 1.9 added to the previous week taking that week to 40.7 mil bu. Both are slightly below the pace last year at 54.7 mil bu. Total year to date is 1.652 bil bu vs. 1.554 last year. China’s National Grain and Oils Info Centre says the quality of US GMO Corn arriving in China is being questioned. One source is reporting the first cargo of US Corn delivered to China contained more than 10% damage. Representatives for US exporters in Shanghai deny that any shipments have been turned away or that there is any serious problem with US corn. On a day without much news, and in a market jumpy at when China is in the picture, this could create some ripples in the market today.

Globex Overnight Contract Last Net Change High Low Volume ZCU10 368^6 4^6 368^6 362^2 2542 ZCZ10 382^6 4^6 383^0 376^0 6564 ZCH11 396^0 4^2 396^4 390^2 1425

Early Opening Calls: 3-4 cents better

Top News -- US House is considering a bill that will extend the Ethanol tax credit for one year, but drop the Ethanol tax credit to 36 cents vs. the current 45 cents. It also seeks to reinstate the $1.00 a gallon Biodiesel credit, but also maintain the 54 cent a gallon import tariff on Ethanol -- Chinese press reports Heilongjiang province will increase its 2010 plantable corn acreage to 4 mln ha, up 3% over the prior season, while plantings of other crops like rice & potatoes is also seen increasing over the prior season. -- Private Russian crop forecaster suggests if serious drought conditions continue, Russia's grain harvest could fall below the lower end of the 70-75 mln mt forecast -- The amount of Ukraine food grade wheat in this year's crop is expected at 9.0 mln mt, down about 15% from last year's crop, acc. to local newspaper citing the government's minister of farms -- Baltic Exchange dry freight shipping index continues with small daily gains, rising Tuesday by 28 pts to 1,869 -- Monday's USDA Corn: 84% silking vs. 52% yr ago and 70% 5 yr average. -- Monday's USDA Corn: 17% doughing vs. 7% yr ago and 13% 5 yr average. -- Monday's USDA Corn Conditions: vp-poor 9%, fair 19%, good-exc 72% - last week vp-poor 9%, fair 19%, good-exc 72% -- Monday's USDA Weekly Corn Inspections: 42.421 mln bu; expected 31.5 mln bu -- Pending Tender: Cyprus seeking 60,000 mt of opt origin Barley, with an option for 12,000 mt additional, in a tender that closes on Monday, July 26. Shipment is expected between Sept 15 to Feb 10, 2011 -- Dalian Jan. Corn futures were down -2 @ 1,931 yuan/mt. -- Liffe Aug. Corn futures were down -1.50 @ 167.75 euros/mt., as Nov. was down -2.00 @ 164.25 euros/mt. -- Globex Corn Vol: 200,966; Pit Vol: 12,408; Open Interest change: + 13,412 -- Weather: 6-10 Day Forecast: Above Normal Temps. Above Normal Precip. -- Outside markets: Energy Complex +0.40 at $79.38; Gold & Silver: -0.1 at $7783.0 & +0.030 at $18.230; US $ -0.197 at $82.045

Cash Markets -- CIF Corn steady off 2. July +?? to +34, Aug. +?? to +35, Sept. +48 to +50, Oct. +48 to +52, Nov. +49 to +52, Dec. +52 to +56, Jan. +41 to +45

Opening call firmer. After the close yesterday the USDA released weekly crop condition reports showing bean conditions unchanged from last week at 67% good to excellent. Blooming was ahead of last years pace at 75% bloomed vs. 60% a week ago and 72% 5 year average. Setting pods 35% ahead of the 5 year average of 31% and last years pace of 19%. Markets are firmer overnight on short covering. Outside markets are somewhat supportive Dow is 62 higher, $USD unchanged, Crude +.25. Current 6 to 10 day weather maps call for above normal temps in most of the growing areas with above average moisture. Expectations are for market to firm today after the big break yesterday traders say. Look to be a buyer of Nov Beans at 968 and risk a close below 960. Overnight Chinese Soybeans, Meal and Oil closed lower.

Early Opening Calls: Soybeans 5 to 6 cents higher, Meal $3.00 to $4.00 higher, Oil .05 to .10 higher.

Top News -- Private crop analyst in Ukraine lowered the 2010 rapeseed crop by 100,000 mt to 1.5 mln mt. They note only 915,000 ha will be harvested of the 1.52 mln ha planted. Last year they harvested 1.85 mln mt of rapeseed. -- Celeres reported Brazilian farmers have forward sold 78% of the Soybean crop vs. 76% last week and 83% avg. -- Ths US has lifted restrictions on imports from Bunge’s Canadian canola plant, that had been hit by salmonella earlier this year -- Baltic Exchange dry freight shipping index continues with small daily gains, rising Tuesday by 28 pts to 1,869 -- Monday's USDA Soybeans: 75% blooming vs 60% yr ago and 72% 5 yr average. -- Monday's USDA Soybeans: 35% setting pods vs 19% yr ago and 31% 5 yr average. -- Monday's USDA Soybean Conditions: vp-poor 10%, fair 23%, good-exc 67% - last week vp-poor 9%, fair 24%, good-exc 67%. -- Monday's USDA Weekly Soybean Inspections: 6.595 mln bu; expected 7.0 mln bu -- Pending Tender: Israeli group on Monday announced a tender for 14,000 mt of US or Latam Soymeal, bid deadline is Wednesday, July 21st -- Pending Tender: July 21 is bid deadline for India RBD palm olein tender, they're seeking 8,500 mt for delivery in the Aug-Sep period -- Dalian May. Soybean futures were down -35 overnight @ 3,935 yuan/mt., May Soymeal was down -36 @ 2,883 yuan/mt. -- Dalian Jan. Palm Oil futures were down -74 @ 6,592 yuan/mt., as Jan Soyoil was down -62 @ 7,596 yuan/mt. -- Malaysian Oct. Palm Oil futures traded -29 ringgit lower to 2,444 ringgit/mt., range on the day was 2,469 to 2,434. -- Liffe Aug. Rapeseed futures were down -2.00 @ 356.75., and Nov. was down -1.75 @ 361.50 euros/mt. -- Globex Soybean Vol. 93,722; Pit Vol. 7,337; Open Interest Change: + 4,302 -- Weather: 6-10 Day Forecast: Above Normal Temps. Above Normal Precip. -- Outside markets: Energy Complex +0.40 at $79.38; Gold & Silver: -0.1 at $7783.0 & +0.030 at $18.230; US $ -0.197 at $82.045

Cash Markets -- CIF Soybeans steady. July +80 to +95, FH Aug. +77 to +95 , Aug. +72 to +85, Sept. +80 to +90, Oct. +71 to +76, Nov. +74 to +80, Dec. +72 to +75, Jan. +72 to +75

Overnight trading closed down 7 cents. The opening call is for the market to open in line with the over night. After a weekend of heavy rains and heat across the Midwest, beans will be trading lower. Beans still have about a month of trade where weather can affect the crop before it is made. There is a very difficult story developing in determining how much of the crop is benefiting from rains and how much is being hurt. The summer rains are always beneficial to more than that that gets damaged. But this is hard to combat with so many reports of flooded out crops. Reports of nitrogen leaching and potential loss of yields have been widespread and will grow this week. Outside markets: USD$ -0.16, Dow futures -17, Gold -0.8, and crude -0.27. Outside markets didn’t seem to have much effect on trade last week, but we’ll see if that trend continues this week. The Commitment of Traders report as of July 20th. shows Index Funds positions as: Corn Long 416,700 up 17,048, Soybeans Long 152,857 up 1,849, Wheat Long 196,271 off 430, Meal Long 8,400 up 498, Oil Long 98,207 off 339.

Globex Overnight Contract Last Net Change High Low Volume ZSQ10 1010^0-7^0 1015^4 1007^6 1044 ZSU10 984^4 -6^4 990^4 981^2 474 ZSX10 974^2 -7^2 981^6 972^0 5667 ZSF11 982^0 -7^6 990^4 980^6 611 ZSH11 986^2 -6^6 993^2 986^2 117 ZMQ10 296.9 -3.0 299.6 295.7 989 ZMU10 287.6 -2.8 290.2 286.6 510 ZMV10 280.0 -3.8 283.5 280.0 212 ZLQ10 38.90 -0.17 39.19 38.81 5623 ZLU10 39.07 -0.07 39.28 39.01 4222 ZLV10 39.23 -0.11 39.44 39.18 1048

Early Opening Calls: off 5-7 cents

Top News -- Many analysts expect Monday's USDA crop progress report to show little change in Corn & Soybean conditions this week. Last week Corn in the good to excellent was 73%, while Soy in that category was 65% good to excellent -- Malaysian palm oil exports during the July 1-25 period were 1.103 mln mt, down 0.9% from the same number of days in the prior month, acc. to SGS data -- Malaysian palm oil exports during the July 1-25 period were 1.074 mln mt, down 4% from the same number of days in the prior month, acc. to Intertek data -- Indonesia lowered the base crude palm oil price to $725/mt and lowered their export tax to 3% in August from 4.5% -- Indonesia Palm Oil Assoc data suggest exports of crude palm oil during June rose by 9% to 1.14 mln mt shipped abroad. -- Pending Tender: Israeli group on Monday announced a tender for 14,000 mt of US or Latam Soymeal, bid deadline is Wednesday, July 21st -- Pending Tender: July 21 is bid deadline for India RBD palm olein tender, they're seeking 8,500 mt for delivery in the Aug-Sep period -- Dalian May soybean futures were 5 yuan better at 3,970 yuan/mt. -- Dalian May soymeal futures were 11 yuan better at 2,919 yuan/mt; Jan soyoil were 34 yuan better at 7,658 yuan/mt. -- Dalian Jan palm oil futures were 40 yuan better at 6,666 yuan/mt. -- Liffe Aug rapeseed futures were off -3.50 euro at 358.50 euros/mt. -- Globex Soybean Vol. 71,751; Pit Vol. 8,398; Open Interest Change: - 5,698 -- Weather: 6-10 Day Forecast: Above Normal Temps. Normal to Above Precip. -- Outside markets: Energy Complex -0.74 at $78.24; Gold & Silver: +0.5 at $1190.2 & +0.024 at $18.125; US $ -0.159 at $82.470

Cash Markets -- CIF Soybeans steady. July +80 to +90, FH Aug. +70 to +?? , Aug. +70 to +85, Sept. +80 to +90, Oct. +72 to +76, Nov. +76 to +80, Dec. +72 to +75, Jan. +73 to +75

Overnight, the corn market opened lower and traded as much as 4-5 lower before recovering and closing about 2 cents lower in the middle of the trading range. There were some big rains across some areas which will cause flooding and some damage, but the areas aren’t great. There isn’t a lot of new news this morning so traders are mostly looking at weather and technicals and right now, there isn’t anything bullish. The weather remains pretty good across most of the Midwest with some of the dry areas shrinking as they received rains over the weekend. Seasonally, the 2nd half of July usually has corn prices going lower which could be weighing on the market. Crop condition comes out today after the close and the market is looking for steady or possibly a slight improvement in the good/excellent ratings. The market is starting to build in a bigger corn yield and expect the USDA to confirm this on the August report because that is the first time the USDA actual does some crop survey’s. The corn market will be called about 2-3 lower this morning and then look to see if it can hold the lows from last night. The outside markets are quiet with stocks around unchanged, crude down 50 cents and the US$ down about 20 points.

Globex Overnight Contract Last Net Change High Low Volume ZCU10 368^6 -2^4 371^6 366^6 5403 ZCZ10 382^4 -2^0 385^4 380^4 9174 ZCH11 395^2 -2^4 398^2 394^0 1587

Early Opening Calls: off 2-3 cents

Top News -- Many analysts expect Monday's USDA crop progress report to show little change in Corn & Soybean conditions this week. Last week Corn in the good to excellent was 73%, while Soy in that category was 65% good to excellent -- Head of China based JC Intelligence reportedly suggests Corn imports by China this year will be 1.7 mln mt, climbing in 2011 to 5.8 mln mt and possibly as high as 15 mln mt by the 14/15 MY based on feed livestock demand created -- Head of JC Intelligence reportedly also sees DDG imports by China this year will be in a range of 1.7-1.8 mln mt. Consumption of meat is expected to grow to 61.7 kg per person this year and in 2015 to 63.1 kg per person -- Belarus ag ministry says as of July 23, 1.73 mln mt of grain had been harvested, that represents about 23% of total area harvested. Last year at this time they had harvested only 234,000 mt -- 17.5 mln mt of grain have been harvested as of July 23 in Ukraine, acc. to the country's Ag Ministry. Last year at this time nearly 19 mln mt had been harvested. 10.7 mln mt of Wheat & 6.1 mln mt of Barley have been brought in so far. Avg wheat yield is 2.72 mt/ha, barley yield is seen at 2.11 mt/ha -- Saudi Arabia's trade ministry says in the 10/11 marketing year, the kingdom is expected to import 2.7% less Barley, bring the total to 7.5 mln mt by July 2011. -- According to growers group, Spain's wheat harvest nearly 70% finished while 60% of the barley crop has been brought in from the fields -- USDA on Friday announced list of 27 US poultry facilities allowed to export to Russia under new terms hammered out in June. Some packers allowed include Pilgram's Pride, Sanderson Farms & Tyson Foods -- Pending Tender: Cyprus seeking 60,000 mt of opt origin Barley, with an option for 12,000 mt additional, in a tender that closes on Monday, July 26. Shipment is expected between Sept 15 to Feb 10, 2011 -- Dalian Jan corn futures were 5 yuan better at 1,933 yuan/mt. -- Liffe Nov corn futures were off -2.00 euro at 166.00 euros/mt. -- Globex Corn Vol: 180,107; Pit Vol: 10,134; Open Interest change: + 150 -- Weather: 6-10 Day Forecast: Above Normal Temps. Normal to Above Precip. -- Outside markets: Energy Complex -0.74 at $78.24; Gold & Silver: +0.5 at $1190.2 & +0.024 at $18.125; US $ -0.159 at $82.470

Cash Markets -- CIF Corn steady off 2. July +?? to +34, Aug. +?? to +38, Sept. +50 to +52, Oct. +48 to +52, Nov. +49 to +52, Dec. +52 to +56, Jan. +41 to +45

TREND:

Corn has too many weather bears here. CZ fell through the 3.85 level late on Friday. This implies more of a down side correction but this level will still hold some magic if we get right back above it? Still unfinished counts to around 4.25.

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