Morning Market Direction:  Corn down 7-8; Beans down 4

The weaker trend has resumed as risk premium continues to come off the table; December wheat futures dropped to a 6-week low during the overnight trade. A few days of extreme heat is expected to give way to much cooler temperatures by early next week.

The weather models are still in agreement that a cold front will push through the region by early next week, bringing rain chances to much of the Midwest while dropping temperatures below normal. The 11 to 16-day outlook still shows a northwesterly flow that will keep precipitation chances below average, with normal temperatures.

News wire story reports progress toward a U.S.-China trade deal has stalled while the Trump administration determines how to address Beijing's demands that it eases restrictions on Huawei Technologies Co. No face-to-face meetings have taken place, and none has been scheduled since President Trump and President Xi met last month in Japan and agreed to resume talks.

Asked this week by reporters if he was optimistic about a deal this year with China, Iowa Senator Chuck Grassley replied: “Just exactly the opposite.” Treasury Secretary Mnuchin and Ambassador Lighthizer are scheduled to have a call with China counterparts today.

According to sources associated with the USDA's Risk Management Agency, prevent plant acres through early July are higher than what has been indicated. It is reported that prevent plant acres had totaled between 7 and 8 million for corn and from 2 to 3 million on soybeans. Total prevent plant acres are estimated at 12.5 million acres.

Summary Items:
Cooler and wetter forecast for next week pressuring markets.
Weekly export sales have been delayed temporarily.

Corn - $4.00 Spring    

Beans - $9.54 Spring