In the overnight session the grains are trading higher with corn up 5 cents, soybeans up 14 1/4 cents and wheat up 6 1/4 cents. The U.S. dollar is trading .76 percent higher and crude oil is up $1.17. After experiencing another sharp day of selling, China announced they were cutting interest rates for the 5th time since last November and supplementing that with an additional move to lower the reserve requirement at major banks. This announcement triggered an immediate rebound in the market after 5 days of selling.
Export inspections were in line with analyst expectations with wheat showing 277,922 metric tons inspected for export. Corn recorded 883,987 metric tons inspected for export which was within the 825,000-1,000,000 metric tons expected by analysts. Soybeans recorded 210,128 metric tons inspected for export which was also on the high side of analyst expectations.
On Monday, Argentine farmers started a five day crop sales strike to help bring farm policies to the front of attention during an election year. Farmers have not been satisfied with the policies of President Cristina Fernandez saying that her policies have damaged profitability.
This week should remain cooler than normal throughout the Midwest with precipitation expected during the middle of the week in the northwestern part of the grain belt. According to the latest crop conditions report 87 percent of the soybean crop is pod setting which is on par with the 4 year average. Corn conditions remained unchanged this week at 69 percent rated good to excellent. Soybean conditions also remained unchanged.
