The USDA released a crop condition report yesterday. Basically corn and beans rated good-excellent dropped about 3% since the last report. It was enough to slow losses yesterday and to allow for small gains today. Most of the speculative buyers liquidated and may now be buying back in giving some support.

According to DTN:

Corn is 6 higher at midday, sitting in the upper part of our daily range.
Corn is at a six-day high and has traded above the 10-day moving average for
the first time in three weeks. The move on the chart could spur short covering
Tuesday or Wednesday ahead of the monthly USDA report. The trade is expecting
higher carryover numbers on the report due to the higher-than-expected
quarterly stocks number and the higher June acreage number. The overnight trade
was lower following lightly supportive crop ratings due to the favorable
weather outlooks seen Monday. But the forecast dial turned to hotter with less
rain, which has the market firmer. USDA reported corn crop conditions at 70
percent good to excellent on the report Monday afternoon, down 3 percent from
last week and 7 percent better than last year's condition.

It's forecasted to be a little cooler here, but we could really use some rain now and
I don't think we will get any. I think this corn market is bottoming and preparing to
go back up. We may even see record prices this winter if the whole country stays as
hot and dry as it has been.