A.M. Markets

Overnight trading was mixed for corn and soybeans. December corn futures traded from 2 cents lower to 1.5 cents higher and closed 1.5 cents lower this morning. November soybean futures traded from steady to 11 cents higher and closed 6 cents higher this morning. December wheat futures traded from .25 cents higher to 11.25 cents higher and closed 8 cents higher. December corn futures look for support at $4.32 with resistance at $4.49. November soybean futures look for support at $10.00 with resistance $10.34. This morning the unleaded rack price is $2.069 and ethanol is $1.977 for a differential of 9.2 cents. The US dollar is 100 points weaker at 82.75. Dow futures are 11 points weaker at 10,298. Gold is quiet trading in the $1254 area. The night session grain volume was 48,602 contracts.

Yesterday Funds were buyers of 20 million bus of corn, 15 million bus of soybeans, and 20 million bus of wheat. Funds are now long 2.035 billion bus of corn, 692 million bus of soybeans, and 249 million bus of wheat.

The latest weather forecast calls for above normal temps for much of the grain belt. Precipitation forecast calls for normal chances for the Ohio River Valley with above normal to the north and below normal to the south. The Delta is dry. Western Australia has had some needed rains this week. Russia has had rains in some of their dry areas but are still dry in North Caucasus and Volga Valley areas.

Informa will come out with their September Crop estimates at 10:30 this morning. FC Stone called the corn 13.195 billion bus with a yield of 162.9 bus/acre and soybeans 3.39 billion bus with a yield of 43.5 bus/acre. This compares to USDA August estimates of 13.365 billion bus (165 bus/acre) for corn and 3.433 billion bus (44 bus/acre) for soybeans. Early estimates feel corn could be down 3-4 bus from the August numbers. Illinois, Indiana, Missouri, and Kansas confirm lower yields on the early harvested acres. Grain Traders hope for improvement as harvest continues. Germany looks for a 12% reduction in their grain production in 2010 compared to the 2009 crop. China estimates a 5% reduction in their 2010 corn crop compared to the 2009 corn crop.

Early calls this morning are mixed on corn possibly 1-2 cents lower. Soybeans are looking at 5-7 cents higher and wheat 7-8 cents higher. Grain traders are guessing a choppy market as grain traders position for the 3 day Labor Day Weekend. There are no market on Monday in observance of Labor Day!!