Good morning!

Our markets are weaker this morning led by soybeans.  The bearish influences are coming from cooler, wetter weather forecasts and EU debt problems.  The hot temps will finally subside later this week as a cold front moves in, adding moisture.  The 8 to 14 day forecasts also show cooler, more normal temps along with rainfall across a good swath of the corn belt.  If all of this predicted moisture holds true, it would be hugely beneficial to the soybean crop, coming just in time. 

Yesterday afternoon the crop ratings were out.  In corn the US dropped 5% points from 31% GE to 26%.  This was as expected.  The only thing that may be a surprise to the trade is how sharply the Western Corn Belt fell off (Iowa dropped 13% points, down to 23% GE after being 36% GE last week). In beans, the US dropped just 3% in the GE category and states like Wisconsin and Michigan actually improved week-on-week after some nice rains.  The Western Corn Belt slipped however, with Iowa dropping 10%, down to 28% GE from 38%.

Currently

Corn is down 13 to 17 cents

Soybeans are down 35 to 40 cents

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