Trade is on the positive side ass the night session ends as light short covering ahead of the weekend takes place. A significant amount of risk premium has been taken out of the market this week and now some of this is being replaced. Much of the fundamental focus of today's session will be on weekend weather outlooks. The extreme heat that is affecting much of the US is expected to break down by early next week and be replaced with much cooler temperatures. In fact, some regions will fall to below normal temperatures. This will create favorable conditions as the US corn crop starts to pollinate. Technicals will also play a role in today's trade as futures are trying to climb back above recently broken support levels. The market will also keep an eye on trade developments with China as both sides try to reach some sort of resolution to the ongoing conflict.

Highlights
* Weather turns non-threatening
* Trade starting to look forward to Aug 12th WASDE
* Technical support broken this week
* Risk premium taken out of market
* US/China trade talks stalled
* More uncertainty on US acres
* We may see MFP details next week

Corn
* Heat damage minimal
* RSI falls to 49%
* Weather favorable for pollination
* Firms have raised corn yield estimate
* Weak SAM basis takes buyers away from US

Soybeans
* Lack of Chinese demand impacts global balance sheets
* US new crop demand remains low
* RSI at just 46%
* Short fund position limits fresh selling
* Buyers favoring SAM soybeans over US

Wheat
* US overpriced in global market
* Global harvest pressure
* Spring wheat tour next week
* Heavier sales of winter wheat
* RSI at 45%

Livestock
* Position squaring ahead of COF report
* Bi-annual cattle inventory this afternoon
* Smaller dairy herd expected
* Cash pork supports futures
* Hog slaughter numbers dropping