Grains are sharply lower in overnight trading:

Dec Corn – 11 ½ cents/bu (5.15 ¾ )

Nov Soybeans – 14 ¾ cents/bu (12.69 ¼ )

Dec Chi Wheat – 10 ½ cents/bu (6.98 ¼ )

Cdn $ -0.00675 (77.77 cents)

WTI Crude Oil -1.58/barrel (70.39)

Monday is starting out as a weak day in all markets (except for precious metals), as all commodities are lower, and US equities are sharply lower, with Dow futures trading down 658 points (1.95%) @ 33,804.  One of China’s biggest real estate developers (Evergrande Group) missed another interest payment over the weekend, and their share price fell 10.2% to 2.58 Hong Kong dollars, after trading as high as 15.00 dollars earlier in the year.  Heavy stock losses in Asia spread into Europe overnight, and are expected to continue in North America today.

The US Midwest had a very good harvest weekend, which led to decent farmer and commercial selling of grain futures when trading resumed at 8 pm ET last night.  The US dollar index is also sharply higher overnight, which always provides headwinds for grain values.

Forecasts this morning are calling for decent rainfall amounts across the northern Corn Belt, with that precipitation spreading into the Eastern Corn Belt tomorrow.  Conditions should dry up later in the week, with both the 6 to 10 and 11 to 15 day windows looking dry.  Temperatures are expected to remain above normal right through the end of September.

Argentina is expected to see good rains later this week, which will limit any moisture stresses there.  Brazilian production zones are also expected to see good precipitation beginning this weekend and stretching through next week.