Grains are mostly higher in overnight trading:

Corn + 1 ½ cents/bu (Dec @ 4.17 ¾ )

Soybeans – ½  cent/bu (Nov @ 10.73 ¼  )

Chi Wheat + 6 cents/bu (Dec @ 6.28 ¾ )

Cdn $ +0.00090 (76.19 cents)

WTI Crude Oil +0.15/barrel (40.79)

As expected, grains traded both sides of unchanged overnight, with soybeans trading down as much as 8 cents/bu at one point.  However, tremendous global demand for grains, spearheaded by China, is keeping underlying support for all grains.  Rumors are rampant that the Chinese government is about to issue new corn import quotas.  The Chinese have issued a total of 12.2 million tonnes of tariff waivers on corn, but Chinese importers already have 17 million tonnes of corn on the books (12 million from the USA and 5 million from other suppliers).  The USDA has only been using a 7 million tonnes Chinese import program in their Corn Supply and Demand tables.

Overnight, the Buenos Aries Grain Exchange lowered their estimate of Argentine wheat production to 16.8 million tonnes from 17.5 million, citing drought and frost damage as the reasons for the drop in production.

Both Argentina and Brazil look to get good rains through the weekend, but weather maps are drier for Argentina going forward, and remain drier than needed for the southern half of Brazil as well.