The Heat is On!

Corn fell back 13 cents while soybeans gained 14 in the July contracts. New crop
contracts did even better. Overnight both moved higher as the concern of high
temperatures in the N. Plaines & N. Midwest. These areas are dry and high temps
will are not welcome. The heat will help the well saturated areas south of there but
you need good crops in most growing areas if you want to achieve record yields.
Soybean oil continues to march higher pulling soybeans along for the ride even as
cash basis weakens across the Midwest. China is fighting food inflation by trying to
limit futures market speculation while also trying to weaken their currency vs the
dollar. They can try to manipulate the markets but the markets know they need to
import cash commodities and it will be hard for them to step away for long enough to
scare the market.

See attached report for more information on outlooks, technicals, and weather updates.

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