Good morning!

Our grains are bouncing back this morning as all eyes have turned back to weather.  There was some talk yesterday about additional rainfall in the forecast – well the talk today is that hot temperatures are returning later this week and into next week and the only real rain event in the forecast consists of scattered light showers.  The rains projected for the Eastern corn belt also appear to be slipping a little south.  Yield projections are in question again and long story short: weather appears to be a bullish this morning.

One of the handful of reasons that our grains got smacked by profit taking yesterday was that there were rumors that the USDA was going to announce some potential changes to the ethanol mandates which had the longs in the market nervous.  Their announcement came at approx 12:30 yesterday afternoon and all it basically said was that there will be some greater CPR flexibility in disaster areas, for emergency haying and grazing.  Ag Secretary Vilsack says there are no plans to change biofuel ethanol mandates for corn-based ethanol.  This may calm some fears in the short-term and allow the markets to bounce higher today. 

The USDA released their weekly export sales report this morning, this was a non event for the most part although old crop bean sales were strong which is friendly.

Currently

Corn is up 10 to 15 cents

Soybeans are up 5 to 8 cents

http://www.fccoop.com/markets/information.cfm