As far as corn is concerned, a lot of irreversible damage was done in Iowa, Indiana, and Ohio before last week's rain. One of our producers in Ohio has 200 acres of corn that went from a 153 yield to 25 yield, and we suspect there will be more of this. It will be a growing season where Illinois corn carries the other parts of these not-so-lucky areas. August weather will still have a major impact on final yield.

Trade Rec: Sell December corn anywhere above 3400, and risk the trade to 3560.We look for a harvest low around 290 to 300

With its reduced acreage base, soybeans do not have any yield to lose, without reducing carryover below the 200 million bushel pipeline requirement. We had above normal rainfall and below normal temperatures in August the past two years, saving the soybean crops. The 2007 soybean crop is now at its most vulnerable period, and much of its production area is in need of timely rains as pods set and fill. Another August with below normal temperatures and above normal precipitation is needed for the soybean crop to yield to potential. So far, August 2007 is not starting out that way.

Trade Rec: Sell December Soy Meal at 22400 or higher, risk $600 on the trade. The profit objective is in the 21800 area