Grains were lower overnight while the US Dollar hit its highest mark in 4 months. Crude oil recovered some of yesterday's losses while equity futures drifted towards negative territory to start the day.
USDA’s crop progress report on Monday showed no material changes in crop conditions with both corn and soybean crop ratings holding steady at 76% and 71%, respectively from the previous week. Spring wheat dropped 1% to 69%. But the overall trend is still better crops ratings than what traders have been expecting as well as conditions that are generally better than last year.
Precipitation totals were light in the last 24 hours with some rain events hitting W NE and S IN/OH. Intense heat sets up in the Midwest US and northern Plains from Wednesday through Saturday, with high temperatures between 95°F to 105°F and low temperatures near 80°F; temperatures normalize early next week, but warmth returns thereafter. The latest weather models show cooler temps and more precip for the Midwest in the next 3 to 5 day period.
Oil prices erased early losses on Tuesday after falling on concerns over a crude and refined fuel glut outweighed an expected cut in U.S. shale production and a probable further draw in U.S. crude inventories. Prices turned higher as an official said oil production at Libya's Sarir field had been suspended due to protests at the Hariga terminal. Output at the Messla field was also at risk if ports shut, the official said.
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