Grains were higher overnight yet again fueled by wheat which was showing double digit gains heading into the break.
The trade will look for further direction in the USDA Grain Stocks and Acreage report at 11 am CDT. Acreage numbers are expected to be mostly on par with the March report, but there is a slight lean for higher soybean acres and lower corn acres thanks to planting issues in the Spring. For quarterly stocks, the trade expects a corn number of 5.1 billion bushels and soybeans at 0.98 billion bushels.
The condition of French soft wheat deteriorated last week while harvesting got off to an early start, data from farming agency FranceAgriMer showed on Friday, reflecting the impact of a heatwave. In a weekly report published on Friday, FranceAgriMer estimated that 65 percent of soft wheat crops were in good or excellent condition by June 26, down from 68 percent a week earlier. The latest soft wheat rating was equal to the score seen a year ago, although crop conditions in 2016 subsequently plunged as harvesting showed the worst yields in three decades.
US weather looks to be dry & hot (mid 90s/low 100s NW Plains) starting early next week which could add to the stress in U.S./Canada wheat. The area could expand to two-thirds or more of N. Plains wheat and at least half of Canadian Prairies wheat/canola by mid-July.
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