vol oi change total oi BEANS 115800 -5500 335400 MEAL 65900 +5000 168700 OIL 25200 +2400 178000 CORN 138200 -15554 710900 WHEAT 40822 -6950 231600 Funds purchased more contracts on the continued lack of rainfall in the heart of the corn / bean belt. First notice day for July contracts is fast approaching, and with that comes continued liquidation. July beans open interest fell by 22,995 contracts on Friday, and now stands at a total open interest of 45,755. July meal open interest was down 7,351 contracts, and now stands at 27,473 contracts. July wheat was down 10,296, and July corn was down 27,095 ctrs. Funds added more length in modest amounts for the soy complex, and shortcovered some wheat. Oilshare was stronger, as oil/meal trade dominated in Friday's trade. PALM OIL - dwon 5 ringgits and cash off $2.50 in quiet turnover. NEWS Stocks were lower today as oil prices continue to surpass the $60 benchmark but turned upward after the opening bell. Crude oil prices continue to be an issue. Gasoline prices are following crude, up 3-5c at a time, and the market continues to fret about the possible impact of higher oil on corporate profits. After a weaker start, the Dow is up 18 pts. REPORTS USDA June Hop and Pig Report showed the June 1 inventory at 100% of last year, which was viewed as neutral. The breeding herd was 101% of last year, neutral as well. Commitment-of-traders report as of 6/24/05 in contracts: beans: net long 54,580 futures only net long 70,465 futures / options futures only not as long as expected meal: net long 40,678 futures only net long 45,449 futures / options futures only not as long as expected oil: net long 30,003 futures only net long 30,725 futures / options futures only not as long as expected corn: net long 43,597 futures only net long 45,425 futures / options futures only larger than expected wheat: net short 21,878 futures only net short 5,712 futures / options in line with expectations Gist of the report is supportive for the soy complex, and negative for corn. In lieu of weaker openings, expect corn to therefore have the largest impact on profit-taking. WEATHER - our market maker this morning - wetter and cooler - Illinois is still missing important rainfall - Iowa had great weekend rains. The forecast is beginning to look a bit better, with Iowa hogging all the rainfall. Heavy amounts were recorded in northern Iowa , with up to 5-6" of rainfall recorded. Sunday rains spread across parts of Minnesota and Wisconsin. Missouri and Illinois continue to wilt in the summer heat, with temperatures over 90 degrees. Parts of St. Louis had pop-up storms, but nothing significant, as did northern areas of Illinois. This morning the market decided that some rains (very good where they fell) was better than no rainfall at all. Most of all, temperatures are forecast to cool significantly. Cropcast says that rains could erase dryness in the east by mid-week, and that the 11/15 day scenario calls for the ridge to move to the west, allowing for showers to penetrate much of the belt. That is certainly some good news, because right now crops in Illinois aren't looking too good, and conditions will be most revealing when they are released tonight. For the opening, the pressure is on with lower calls around the board: beans: 10-12 lower meal: 2.80 - 3.20 lower oil: 33 lower corn: 3-4 1/2 lower wheat: 5 lower ANNOUNCEMENTS Argentina wheat planting was behind at 33% complete, vs. 52% last year due to dry conditions in Cordoba and La Pampa. TECHNICALS wu - funds have persistently kept a net short position here, and the higher we go the less export activity we see as we become uncompetitive. Major trade remains in a wide channel, and a gap is still open between 3.40 and 3.42, which will provide support on a setback. first support: 3.42 1/2 - 3.43 resistance: 3.48 possible range: much the same cz - major trendline is well underneath the market at 2.34 today. We are operating in the upper half of the current trading range, but this morning's opening puts on a course with last week's low trade. If we leave a gap, will be negative as well. In any case, gapfill marks resistance on a weaker opening, and slightly better weather conditions could imply that comebacks will be sold. first support: 2.46 3/4 - 2.48 resistance: 2.50 / 2.51 possible range: much the same, or lower sx - this morning's weaker opening will now turn the charts into a toppy looking pattern, with prices having run up to a 7.75 high, courtesy of a previous overnight session. For the bean market to surpass $8.00, the continuing hot/dry pattern will have to remain intact after the fourth, followed by ratings that continue to decline. For the moment, the mentality has switched. The major trend is still higher, and we could see some buying at lower support levels. Further liquidation should hit if we break 7.45 - 7.50 level, key support. We could test that on a lower opening. If broken, look to continue to end this day on a down-note, with lower rating confirmation setting up for a turn- around Tuesday session. major support: 7.45 - 7.50 resistance: 7.58 possible range: much the same, or lower smz - contract high here is 243.50. The major trend has been higher but opening weakness might find us looking at bottom support, which would cross at 236.00 today. Any trade under 235.00 would most likely find stop losses, and extend the current trading range downward. bottom support: 236.00 major resistance: 241.00 possible range: 236.00 - 239.00, or lower boz - posted a new contract high at 2684 on Friday. We jumped over a downtrend channel, gapping higher on top of the channel. Look for the market to setback on weakness at the opening bell, but find support at channel trade. lower support: 2603 - 2610 resistance: 2653/2660 possible range: much the same Crop ratings are out tonight, and traders expect soybean conditions to decline 2-3%, with the greatest losses continuing to come from Illinois, followed by Missouri. Traders expect corn conditions to decline by 1-2%. Oh, yes, and while we are talking about reports, the June 30 acreage one is just around the corner. Expect to see position evening as we go there. See you at midday...

vol oi change total oi BEANS 47400 -943 246000 MEAL 22400 +948 129700 OIL 22800 -2300 142900 CORN 46400 -3000 680000 WHEAT 21000 +632 205000 Funds cotninued to make minor asdjustments to their positions yesterday. Funds sold 1500 oil, and bot 500 meal. Funds also sold 1000 corn and 2000 wheat. Spreads remain active in oil- share, and continue to pick up in the July / November bean spread. Meal spreads remain very firm. PALM OIL - up 2-9 ringgits, and up $2.50. NEWS Stocks opened flat today despite pressure from falling oil prices. Wal-mart earnings were disappointing. At the open, the Dow is down 3 pts. REPORTS Broiler egg sets in the w/e May 7 were 101% of last year. Chick placements were also 101% of yr ago. Export Slaes: beans: 04/05 net 166,800 mt (on an estimated 175-425 low end) meal: 04/05 net 51,100 mt (on an estimated 50-75 54% below the prev. wk and 40% under the prior 4-wk average) oil: 04/05 net 5200 mt (on an estimated 2-6000 sales mainly for the Dom Rep) corn: 04/05 net 1.390 mt (on an esitmated 725-975 good 2 1/4 times the prev. wk and 2 times the prior 4-wk average - major increases for Japan, Egypt, Taiwan, and Mexico) wheat: 04/05 net 141,300 mt 05/06 net(on an estimated 255-375 low end - down 43% from the pre. wk and 60% under the 4-wk average) USDA SUPPLY AND DEMAND Bean ending stocks: 05/06 at 290: 04/05 at 355 average guess: 355 Corn ending stocks: 05/06 at 1.540: 04/05 at 2.21 average guess: 2215 - 2300 Wheat ending stocks: 05/06 at .678 bln bu: 04/05 at .541 average guess at .578 Mean ending stocks: 250 st Oil ending stocks: 1.266 bln lbs: 04/05 at 1.24 US winter wheat: 1.591 vs. 1.499 in 2004 average guess at 1556 US HRW: 05 at 1.006 bln bu vs. 856 - average guess is 981 US SRW: 04 at 302.3 mln bu vs. average guess of 305 World corn: 05/06 ending stocks at 122.1 mln t: vs. 128.7 in 04/05 World wheat: 05/06 ending stocks at 147.4 mmt vs. 149.6 in 2004/05 World ending stocks: beans 04/05 - 51.08 mmt vs. 37.41 USDA 04/05 bean import: China at 22.8 mmt World numbers: Argentine corn: 19.0 Sout aFric corn: 9.5 China corn: 127.0 China wheat: 93.0 EU 25 wehat: 127.5 Canada wheat: 23.5 Argentina wheat: 15.50 Australia wheat: 23.0 Brazil beans: 53.0 Argentina: 39.0 Corn trndline adjusted to 148 bushels per acre due to rapid 2005 plantings Reactions were bullish soy, and bearish grains. Weather for now is bearish: beans: 4-8 higher meal: 1.00 higher oil: 9 higher corn: 1-2 lower wheat: 1-2 lower ANNOUNCEMENT Conab announced that the bean crop foecast was reduced to 50.2 mmt due to dourght from 53.1 on March 22. Corn crop was trimmed to 36 mmt from 39 mmt set in March. WEATHER - Midwest rains could cross the entire area - Weather is bearish. DELIVERIES beans: 204 Bunge stopped 104 / Tenco stopped 86 / UBS stopped 14 wheat: 106 / scattered stopp9ing corn: 598 oil: 132 USA stopped 132 TECHNICALS Bull markets need volume to feed it on a daily basis. The dwindling turnover pre-report, and even from sessions earlier in the week, spell trouble for a bull market. Seems to be a bull market now treading water a bit. We will open higher, but until the market sees clear and present danger, rainfall dealys will not be bullish for soybeans. Would look for beans to remain trapped in presetn ranges, whil opening wekanss in corn / wheat may continue. Funds may opt to cover a few short positions for corn and wheat after the bell. Would look for continuing stable soy, and perhaps a bit of shortcovering in the grains. sn - bounded clearly by trendline resistance at 6.51 on the upside, and 6.18 on the downside. Rain coming in will limit rallies, but right now the ending stocks number was a bit of a surprise. There is probably not enough reason to break the market hard, but not enough reason (with rain potential) to take it over trendline. Look for the market to continue to stay trapped with a buy breaks mentality. If the market breaks hard, China could be underneath with pricings. first support; 6.31 reistnace; 6.41 possible range: much the same, or lower smn - trading range from 185.00 - 205.00. Expect meal to likely pick up support today from bean strength. first suport: 192.00 resistance: 195.80 possible range: much the same bon - oil could stay under pressure vs. the meal today. Look for trading ranges to continue, but the presence of a new high a few days ago will look to have a bit of testing again today. first support: 2292 - 2297 resistance: 2328 possible range; much the same wn - moving sideways, with major trendline support slding by at 3.12. We will test major trendine suport on the opening. We could bounce on shortcovering. first support: 3.11 resistance: 3.22 possible range; much the same cn - could set a new contract low on the opening bell. Think that any weakness could be purchased today. Major trendline support under the market crosses today at 2.02. Could bounce should we go there. Major trendline support: 2.02 resitsance: 2.05 3/4 possible range: much the same Calendar events: May contracts expire Friday See you at midday...