Overnight Grains Sharply Higher

Overnight grains are sharply higher on the eCBOT market with soybeans up around 25c, wheat around 10c higher and corn 8c firmer.

Cuts to its previous planting report from the USDA is supporting grains this morning, along with lower freight rates and, for once, a weaker dollar.

The shock finding of an extra 2m acres of soybeans in it's Oct 10 report was partially erased yesterday with the NASS admitting it had spotted errors in the reporting mechanism.

The U.S. government reduced its estimates of planted and harvested land by 1 million acres, including a decrease of 300,000 acres in Iowa, the biggest producing state, and 200,000 acres in Illinois, the second-biggest grower.

The department also cut its corn estimate of harvested acres by 1.3 percent and said ending stocks on Aug. 31 will total 1.088 billion bushels, down 5.7 percent from an earlier forecast of 1.154 billion.

The Baltic Dry Index dropped below 1,000 for the first time in six years yesterday as the lack of credit curbed global trade and shipowners threatened to reject orders. The index fell 6.3 percent to 982 points, the lowest since Aug. 8, 2002.

The dollar is also weaker this morning ahead of an anticipated 0.5% cut in US base rates by the Fed later today. At 9am GMT the pound was $1.6038, from around $1.5900 late yesterday.