eCBOT Close, Early Call

The overnight grains closed higher with beans leading the way finishing with gains of around 12 cents. Corn closed 3-4 cents higher, with wheat up 1-3 cents.

A firm crude oil market and positioning ahead of tomorrow's USDA S&D report provided some support, even though no major shocks are likely to be in store, only minor "tweaks" to ending stocks.

Beans remain the driving force as US farmers hold onto their stocks waiting, and hoping, for higher prices.

That is squeezing nearby basis levels higher (the premium at which physicals trade over futures markets).

News late tonight/early tomorrow morning from the Argy farm leaders meeting with the government will be eyed for any signs of conflict. That could add further premiums at the front end.

Once tomorrow's report is out of the way attention will start to focus on US farmers planting intentions. The jury still seems to be out on that one. I'd have thought that lower corn and sharply higher soy would have been the order of the day but recent reports suggest that that may not be the case.

Despite the lower inputs associated with beans over corn early reports seem to be suggesting that US farmers will plant as much corn as last season, and maybe even a bit more.

Perhaps they are pinning their hopes on the government raising the limit on ethanol inclusion in gasoline. If it is increased that could put a bit of a fire under the corn market. If they get their wish and corn shoots up I wonder if they'd sell it this time?!

Early calls for this afternoon's CBOT session: Beans up 10-12 cents, wheat up 2-4 cents, corn up 3-5 cents.