eCBOT Close. Early Call

The overnight grains closed firmer, buoyed late in the session by firmer crude oil. Beans closed around 12-13 cents higher, wheat 6-7 cents up and corn 3-4 cents firmer.

Crude oil was up $1.58, or almost 4%, to $43.23/barrel after better than expected manufacturing data from China boosted hopes that demand from that quarter may increase.

Further production cuts by OPEC are expected next week, possibly more than 4 million barrels/day, according to some reports. In the US, Energy Dept data due later today is expected to show inventories rising by around one million barrels.

EU diplomats voted yesterday to place punitive import duties on US biodiesel.

Despite the positive spin put on things by the Argentine government, a full blown accord with the farm groups down there seems far from being a done deal.

That will keep nearby tightness in place, at least for the time being with the soy harvest only 18% complete in Brazil according to Celeres.

Celeres also said that the crop was 34% sold going forward, which is substantially lower than twelve months ago.

Chinese soymeal demand is seen slowing as migrant workers return to their farms and rural communities from the cities they will probably eat less meat. Tomorrow's weekly export sales report from the USDA will be scrutinised for evidence that Chinese soybean demand is waning.

The Chinese government has said that it will continue to buy local corn to support prices and help the rural economy.

The dollar climbed to its highest in more than three months against the euro on Wednesday hitting 1.2456. Both the BoE and ECB are expected to cut interest rates again tomorrow.

For US wheat drought conditions will continue across the southern Plains but timely rains will reach from Colorado to Georgia late this week and next, according to Allen Motew of QT Weather.

Early calls for this afternoon's CBOT session: Corn futures are expected to open 2 to 4 higher; soybeans 10 to 12 higher; wheat 4 to 6 higher