December corn was 8 3/4 cents lower overnight. The US dollar was lower again overnight and crude oil was higher.

Corn finished lower yesterday on what traders said was a combination of rains in the Midwest and lower crude oil. However, crude was higher overnight and the dollar was lower, and this failed to support corn futures prices in the overnight session. Export sales were a bit higher than trade expectations yesterday. Net sales for corn came in at 303,000 tonnes for the current marketing year which ends on August 31st. Net sales were 543,800 tonnes for the next marketing year for a total of 846,800 tonnes for the two crop years. As of August 21, cumulative corn sales for 2008/2009 (next year) have reached 17.2% of the USDA forecast versus a 5 year average of 13.4%. Sales of 783,000 tonnes are needed each week to reach the 2008/09 USDA forecast. Basis levels continue to firm at the Gulf due to a combination of improved export demand, light sales due to the lateness of the crop and navigation problems on the upper river system. Today is first notice day for September corn with deliveries of 636 contracts.

Rains should finish moving through the central and eastern Midwest by early tomorrow. Amounts have been light to moderate with fair coverage over the past 48-60 hours. The best rains have fallen in Minnesota and parts of Iowa. Forecasts generally call for dry conditions and above normal temperatures after Saturday and through next week in most major growing areas. However, some forecasts are starting to add below normal temperatures 10 days out and longer which means that the threat of frost is likely to remain a market factor.