Most grain futures rallied on Monday night on all the U.S. grain exchanges. Only CBOT SRW wheat exhibited weakness, closing out overnight activity ½ cent lower. U.S. corn planting progress fell even further behind the normal pace last week-as cool, wet conditions continued to limit planting activity, especially in the western Corn Belt. The U.S. Department of Agriculture pegged U.S. corn planting progress at 27% complete entering the week, which is far behind the 5-year average pace of 59% for this point in the season.

Many areas are planting, but many areas are on hold. Conditions are nothing special for those that are planting, and those same marginal conditions will apply to those yet to plant. In a year when we need every bushel, we are off to a slow planting start. Add that onto the fact that the forecast for the next two weeks is exceptionally wet. Weather remains the key factor, as growers look for opportunities to get their corn planted. Corn yields generally start declining if the crop is not planted by mid-May. Tuesday's market activity is all about the weak dollar, and that is sending crude oil sailing higher along with all commodity markets. The only markets that are lower are some of the cattle complex and copper wire.

Monday's drop in corn--despite other supportive factors (such as higher crude oil)--showed that there was some corrective potential.

The outlooks for crude oil prices continue to be supportive for corn. Goldman Sachs Tuesday raised the possibility of crude oil reaching $150-$200 per barrel as early as this year. Crude oil prices could get so high that they start to push corn prices lower. They are going to make it so expensive that people won't be able to make much money on biofuels.

Concerns over ethanol, and what one trader termed the "legislative question mark" surrounding it, are weighing on corn prices. Traders and analysts said it could be making investors wary of corn, as the long-term demand becomes less clear.

It is a worldwide psychological thing.

July soybeans are trading 24 cents higher Tuesday morning, at a price of 1311. The combination of weakness in the U.S. dollar, uncertainty tied to Argentina exports, and lingering concerns about eventual U.S. acreage amid slow planting progress in the Midwest are seen supporting prices.

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