WHATS NEXT......... The weekly export sales report Thursday sent mixed messages. For corn it showed 1.127 million metric tons of corn was sold last week, versus 820 thousand metric tons the week prior. It was the first sale over 1 million metric tons since last March. It suggests last weeks drop in prices is ramping up the export market and with prices lower again this week, traders will look for next Thursday's report to show further interest by importers. Offsetting some of the bullish exports psychology was the absence of key world importer China for the second consecutive week. Bean export sales came in at 351 t.m.t. with China in for 112 t.m.t. versus the three prior weeks purchases of 192, 257 and 124. China has been a very active buyer of beans, the last month. Theres several issues working here. One, the US harvest time has arrived and this is when China gets aggressive buying U.S. beans as we are the worlds largest producer exporter. Two, China seasonally overbooks beans as a supply-side hedge against crop problems in world number two and three producer exporters Brazil and Argentina n now planting their crops. Note, the La Niña weather event is very strong currently and this suggests a hotter and drier season in South America. Reports of hotter and drier than normal conditions are already present. The Frost and freeze event this week looks to have fallen short of a five state event but hit three with losses up to about 50 m.b. You can't tell on Frost problems until the harvest occurs and weights of corn are down as well as beans with smaller soy oil content , so it's all farmer opinions. Were starting to hear more talk of potential problems with winter wheat planting. There's been alittle rain in Texas and Oklahoma this week but the heat dome is expected to rebuild late next week and last into early October, continuing the historic southwestern drought. Planting in those states are well behind the ten year average. Hope of any hurricanes entering the golf and pushing moisture North replenishing and topsoil to trigger planting looks bleak as hurricanes patterns lookto keep the hurricane path along the east coast. We start off wet in the Midwest next week, but the last week of September and first week of October looks for a drying pattern to encourage a quick harvest pace. The corn harvested in September was the first planted therefore first harvested and should be the highest yielding corn with the late planted acres with the lowest yielding coming in October. Corn demand is picking up but it's mid to late harvest when demand looks to pick up on exports with cash purchases by domestic users like feeders and ethanol producers being strong through the entire harvest as they can't risk being short of inventory going into 2012 as supply demand table's look to be more bullish than this year leaving fear they might have to pay one or two more dollars per bushel later. Ok, we retreated in prices after Monday's crop report was less bullish than the trade had expected and a pattern of the government cutting usage to offset production declines for the second consecutive month. The question is how much seasonal erosion can we see before speculators re-enter prior the October 12 crop report. The October report will again have two perceptions. The first is it will come in bullish. Reasons, this weeks Farm Service Agency report suggested last springs record rains and flooding may have cut corn acres up to 1 m.a. or more, beans 1.2 to 1.5 m.a. or more and spring wheat 1.6 to 3 m.a. or more. The fear will be numbers come in even worse, but the other perception is will they cut usage to offset the lower harvest acres and production to ease market reaction. Either way there's a low that needs to be bought before the report and look for strength in prices ahead of the October 12 report. Technicals read like this. December corn support is 6.86 then 6.70 worst case scenario prior the report. Resistance is 7.42 next week. Looking at the December chart foreward. The range between 6.70 and 7.00 will develop a left shoulder of a head and shoulders formation. We shouldn't take out the 7.40 area this month, but we will hold over 6.70. November beans support is 13.48 then 13.38 with resistance 14.10 next week. Unless something new enters we won't take out 14.10 before month-end. December wheat support is 6.85 then 6.50 with resistance at 7.40.