GOOD MORNING—

MARKET HIGHLIGHTS

• Markets trading lower overnight in a quiet trade with no new concerns with the South American weather outlook.
• The CFTC report will be out this afternoon with expectations for new fund selling to show up in corn and wheat.
• China reportedly booked 15 cargoes of soybeans last week.
• Cash grain market still showing some signs of firmness.
• Corn technically testing support at the recent lows near 3.40.  Resistance at 3.45.
• Soybeans technically violating the bottom end of their upward sloping channel.  Support at 9.30 and resistance 9.90.
• Wheat technically range-bound with support at 4.20 and resistance 4.30.
• USDA reported 135,000 MT of soybean meal to the Philippines for 2017/18.

WEATHER             

• Northern Brazil caught rains over the weekend with more expected this weekend/next week.
• Argentine weather is dry to allow planting progress.
• Overall, no new problems in South America.

OUTLOOK

• No big problems in South America now will keep buyers in the soybean market at bay.
• Corn has large supplies, and unless the carry starts to come out of the market, will have a hard time finding buyers.  If there is a reason to rally, the managed fund short is huge and needs to be rolled out of the December 2017 contract in the next couple weeks.
• Soybeans will likely follow South American weather developments, and for the time being, there are no problems.
• Wheat likely follows corn.