Grains are higher in overnight trading:

Corn + 1 ¼ cents/bu (Mar @ 3.78 )

Soybeans + 7 ½ cents/bu (Jan @ 8.91 ¾ )

Chi Wheat + 1 ¾ cents/bu (Mar @ 5.25 ½ )

Cdn $ unchanged (75.91 cents)

WTI Grains Crude Oil -0.34/barrel (58.09)

Soybean futures continue their rally this morning, now 25 cents/bu above their lows that were made on Tuesday this week.  Support is coming from follow through speculative short covering, and on news that China announced another round of tariff “exemptions” on American soybean and pork imports overnight.  That does not constitute the removal of said tariffs, but it does provide some encouragement that Phase One trade talks might soon bear fruit.

The Buenos Aries Grain Exchange reports that corn and soybean planting are now both 49% complete, and that the Argentine wheat harvest is now 46% complete.  The row crop seeding progress is a eye opener from the perspective that some bean strength this week has been attributed to building dryness in Argentina.  The fact that Argentina is only 50% seeded tells you that we are a LONG way away from determining production levels – but it also serves to demonstrate how, at this time of year, the focus is largely on South American crop prospects.

USA Midwest weather was fairly dry yesterday, which will allow for some harvest progress in central and southern States.  Wet conditions will move into much of the Midwest by the beginning of next week, although temperatures are forecast to fall significantly.