December corn was 13 1/4 cents higher overnight. The dollar was sharply lower again overnight and crude oil was sharply higher.

Grains and the soybean complex rallied yesterday. Traders said that the strength came from moderate fund buying and short covering that was boosted by a sharply higher stock market. However, the advanced stalled late in the session in corn which broke to near unchanged levels in the December contract in the late going. Corn lost ground to wheat and soybeans to end the day. Overnight was a different story. Corn helped to lead the overnight advance with outside markets providing a similar background to yesterday morning. Weather may be a mild factor this week with rain expected in the SW Corn Belt today and across the Midwest tomorrow. This will slow harvest progress, but cash market sources indicate that this will be temporary. Frost is predicted in the north central and NE Midwest later this week, but this is not expected to cause significant damage. The USDA will release its Export Inspections and Crop Progress Reports today, one day late due to the Columbus Day Holiday. Basis levels were generally firm yesterday with traders reporting that farmer selling remains light to moderate. For today, all eyes are still on stocks.

Rains are expected in Michigan, Missouri and south central Iowa today with more extensive rains tomorrow extending from the central Plains to Ohio and generally north of the Ohio River. The bigger story is the below normal temps that are expected to dip into the north central and NE Midwest later this week. Right now this looks like a potential frost event. A slight warm up this weekend may be followed by more cold temperatures, especially later next week.