Grains moved sharply lower overnight on tandem with lower equity futures and a higher US$.  Mostly favorable growing conditions continue as a good portion of the Midwest received rain over the weekend.  New crop soybeans took out major technical support on Friday and continued the sell-off overnight.  Given current USDA numbers, 9.50 new crop beans are probably overpriced as harvest approaches.  Early bean harvest in the US delta should be underway shortly.  Dec corn futures will likely test the calendar year lows this week as traders look for record yields.  Corn supplies continue to be burdensome as farmers across the country hold onto old crop corn.  Traders will likely be looking for a small drop in crop ratings this afternoon, which is normal for the time of year.  As long as favorable weather continues, it is going to be difficult to see any sustained grain market rally in the near term without major assistance from outside markets.

Forecasters are looking for excellent growing conditions to continue this week.  Cooler temps should sweep across the Midwest along with widespread rains.  Currently, radar shows a major system moving from IA into IL.

Look for the markets to remain under pressure all day today as a perfect storm of bearish weather and outside markets works against the bulls.  More downside is likely in corn, soy and wheat over the near term as traders price in larger crops.  Despite recent choppy action, a major correction in the equity markets would be a hugely negative factor for commodity markets in general.  Opening calls this morning are 7-8 lower corn, 25-30 lower beans and 10-12 lower wheat.

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