In the overnight session corn soybeans and wheat all traded lower with corn down ½ a cent, soybeans down 3 and wheat down 3 cents. The dollar index is up sharply this morning now trading at 83.455. Due to Labor Day, export sales will be delayed until Friday, September 5th. Ethanol production and stock numbers will be released today.
The USDA reported a 120,000 metric tons export sale of corn to unknown destinations for the 14/15 this morning.
The dollar is rising sharply this morning after the Central European Bank cut their interest rate to 0.05 percent from 0.15 percent. The rate cut came as a surprise as Mario Draghi announced that the ECB was also cutting their inflation forecast and Eurozone growth forecast. The grains should be further pressured by the sharp rise in the U.S dollar as our competitiveness on the global market hurt. The results out of the latest Egyptian tender were announced yesterday with France and Romania winning the sales.
The GFS weather model still shows a chance of spotty frost across the northwest grain belt next week. With the pace of the crop in Minnesota and North Dakota this could be a trade concern but limited damage is expected. At the moment traders seem more focused on a potential yield revision higher in the September 11th USDA Crop Production report.