Soybeans were higher on fund and technical buying, along with the lower dollar and higher gold and crude oil. The Dow closed lower, just above 12,500, on the lack of a resolution to U.S. budget talks. After a very hot week around the Midwest, USDA reported a 2% decline in the crop condition rating and beans continue to develop slower than average following the late start to planting. At this point, many traders and analysts expect at least some downward revision to crop prospects. USDA’s updated production, supply and demand estimates are out August 11. Soybean meal and oil were up, following the lead of beans.

Corn was higher on technical and commercial buying, along with spillover from beans. The corn condition rating dropped 4% and Japan’s purchased more than 300,000 tons of new crop U.S. corn this week, picking up 200,000 tons Tuesday at a $2.20 to $2.30 premium over the December. However, with the calendar turning to August, traders are starting to pay more attention to the weather impact on beans, and at least some yield loss in already factored in. The latest estimate, from Melbourne based ANZ Bank, has the yield at 156 to 158 bushels per acre. Ethanol futures were higher.

The wheat complex was higher on technical buying, the lower dollar and spillover from beans and corn. Wheat’s fundamentals remain bearish, especially on the demand side. Egypt bought 120,000 tons of wheat from Russia ahead of the open and Japan probably won’t buy more wheat until August. The spring wheat condition rating was up 1% from last week but development is behind the usual pace after the planting delays in the Northern Plains. The Wheat Quality Council’s North Dakota tour has the state’s yields as slightly better than expected, but again, developing slower than average. European wheat was higher on spillover from corn and weather concerns. Poland’s statistics office sees grain production at 24.3 million to 25.2 million tons, 1% to 5% less than 2010 due to inclement weather throughout the growing season. Argentina’s Ag Ministry cleared another 450,000 tons of 2010/11 wheat for export, bringing the year to 7.85 million tons available with the marketing year total expected 8.8 million tons.