MORNING TRADE : CORN, BEANS AND WHEAT ARE ALL TRADING HIGHER THIS MORNING.

Good Morning,

          July corn futures closed down 23 cents and new corn closed 10 cents lower on Monday as funds sold nearly 14,000 contracts of corn. Friday's report put the corn planted acreage at 97.4 million which would equate to a nearly 14 billion bushel corn crop. This could put next year's carryout at over 2 billion bushels. USDA released their latest crop condition report raising the good to excellent rating on corn by 2% to 67%. Favorable weather conditions have continued to improve the corn crop over the past two weeks. Good weather will likely help the crop more as no excessive heat is expected over the next two weeks in the corn belt. Much of the nation will be in a drying trend for the next 10 days. The soybean market closed 6 cents higher on old crop and 9 cents lower on new crop yesterday. The soybean market continues to see the division between old and new crop prices as nearby soybean stocks remain very tight. USDA reduced soybean stocks to 435 million bushels on last Friday's report. Total stocks of soybeans are 35% lower than last year with 2012-13 soybean carryout projected at only 125 million bushels. Stocks for next year are expected to rise as USDA estimated that 77.7 million acres were planted to soybeans this year. Soybean production could come in at 3.4 billion bushels leaving a carryout for 2013-14 at 319 million bushels. This is responsible for the price differentiation between old and new crop. Soybean conditions also continue to improve as USDA improved the soybean crop by 2% to 67% good to excellent on yesterday's report. Currently corn is trading 7 cents higher, beans are up a penny and wheat is 10 cents higher.

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