Sunday Night Outlook, 8-26-07

At 5:25 pm,
Weekend weather provided beneficial rains for most of the central and southern Midwest. A few areas of the Delta received rains that may still offer some benefit. China is in fine shape. Australia and Argentina's forecast is similar to last week's outlook.

Price action Thursday and Friday offered signs of climax/exhaustion/culmination. Technical indicators suggest we are poised for weakness across the floor.

The harvest season is just ahead and much of the early corn harvest activity has produced better than expected yields, even in the areas that suffered from moisture stress.

Last week's rally began as a technically-motivated rally, but finished with some exaggerated emotional buying activity triggered by "stop-hunting" market action. This week's price action should take a different course and begin to reflect the approaching harvest season.

Look for a weaker market bias tonight.

Duane