Grains are sideways to close out the day:

Sept Corn + 6 cent/bu (5.51 1/4)

Dec Corn + 7 3/4 cents/bu (5.40 3/4)

Nov Soybeans + 1 1/2 cents/bu (13.51 3/4)

Sept Chi Wheat -7 cents/bu (6.33 3/4)

Cdn $ -0.00330 (79885 cents)

WTI Crude Oil +1.15/barrel (75.25)

A quiet morning day overall in the grain markets. Grains are coasting sideways (not really higher, not really lower) after last night’s crop condition report which showed mostly steady conditions.

Weather is the main story today as hot and dry conditions remain across the Northwest production areas, as well as western Canada. This is an extremely big story especially in the canola market as the heat is taking a major toll on the crop. As a result canola futures yesterday surged to its highest futures point ever, (86% higher than a year ago). With the canola crop in trouble, it is reported that this could lead to the use of an additional 135 million bu of Soybeans for oil. This is already being reflected in the soyoil prices which had solid gains today and supported the soybean futures market.

The consumer price index was higher than expected this morning, worrying the stock market. The Federal Reserve continues to argue that the inflation pressures in our economy are transitory (temporary).

The ag markets research firm SovEcon lowered its Russian wheat crop estimate by 2.3 MMT to 82.3 MMT, citing low starting yields. Yesterday, USDA lowered its 2021-22 Russian wheat crop estimate by only 1 MMT to 85 MMT.

Funds were thought to have been mixed with corn and soybeans expected to have been buyers, and wheat to have been a seller.