Good morning. Ag prices are continuing the downtrend to start Tuesday. Elevated crop condition ratings and concerns about new tariffs are weighing on futures this week. The Midwest weather forecast also remains favorable. Corn futures are trading 2-3 cents lower, soybean futures are trading 4 to 7 cents lower, and the Chicago wheat market is trading 3 cents lower. Products are mixed: soybean meal is down $1-2/ton, and soybean oil is flat. Outside markets are mixed/quiet, crude oil futures are steady, the Dow Jones index is down 50 points, and the US$ index is up 5 points; the S&P500 is up 4 points and the NASDAQ is up 50 points.

Today's Reports: API Energy Stocks, EIA Short Term Energy Outlook

• Private yield estimates are growing as crop conditions remain elevated. The USDA is using a weight adjusted yield of 181 bpa. StoneX put out a corn yield estimate of 186.9 bpa last evening. Such a yield would put corn production at 16.335 bbu. The current corn production record was set two years ago at 15.341 bbu.

• The crop progress report showed corn rated at 74% good to excellent, up 1% from last week. This is the highest national rating at this time of year since 2018. Iowa's corn rating stands out at 86% good to excellent. This is Iowa's highest rating for this time of year since 1994. On the national level, corn is 18% silking (15% avg.) and 3% dough (2% avg.)

• Soybeans were rated 66% good to excellent, unchanged from last week. Iowa was up 2% to 79% good to excellent. Ohio dropped 5% to 54% good to excellent. On the national level, soybeans were 32% blooming (31% avg.) and 8% setting pods (6% avg.).

• Winter wheat is 53% harvested versus the average of 54%. Illinois was estimated at 87% done with harvest. Indiana is 59% complete and Ohio is 48% complete.

• The EPA will be holding a public hearing today on its proposed biofuels mandates for 2026 and 2027.

• The commitment of traders' report was released yesterday afternoon after being delayed due to the Friday holiday. The corn funds added a net 24K of shorts to their net position, bringing it to a net short of 206,463 contracts. This is the biggest net short since last August. For the beans, the funds sold a net of 23K contracts, bringing their net position to nearly even at +425 contracts. The wheat funds were small net buyers of 1,596 contracts, which resulted in a net short of 63,071 contracts.

• Deliveries for July 8th totaled 473 for meal, 77 for corn, 86 for soybeans, and 8 for KC wheat. The last trading day for July contracts is July 14th.

• AgRural estimated that Brazil's 2nd corn harvest is 28% done as of last Thursday. This is up 10% from the week prior but trails last year's pace of 63% by a wide margin. The forecast continues to look drier for Brazil, which should allow for a more active pace in the next few days.

• Parts of Iowa and Nebraska saw rain again yesterday. The Ohio Valley also saw some scattered storms. The temperature outlook remains warm with scattered showers expected for the Midwest. A ridge has developed over the far western U.S., keeping rainfall limited for the western states and western Canada.