eCBOT Close, Early Call

The overnight eCBOT grains closed lower with beans down around 8-10 cents, wheat 10-12 cents lower and corn 5-6 cents easier.

A firmer dollar and weaker crude oil, plus book-squaring ahead of Wednesday's USDA reports dragged the market into negative territory, although beans had been higher early on.

The dollar is up on ideas that US interest rates will begin to edge higher before too long, whilst crude oil is down almost $1/barrel to $67.52 as supply outstrips demand.

Traders are expected to bank some profits after solid gains in recent weeks ahead of the USDA report Wednesday. The USDA are widely expected to cut old-crop bean ending stocks from 130 million bushels last month to around 115 million this time round. Traders are undecided what the USDA will say with regards to old-crop corn & wheat stocks.

For new-crop reductions are expected for corn and wheat, with an upward revision for beans.

June 5th was the deadline day for farmers in Illinois and Indiana planning to plant corn to take the insurance money and switch to beans instead.

Before that, tonight we have the planting progress and crop condition reports to look forward to. Key data to look for in that is spring wheat plantings in North Dakota, and corn plantings in Illinois/Indiana.

China will import an all-time record 4.62 MMT of soybeans in June, after importing 3.96 MMT in May, according to the country's Commerce Ministry.

On the weather front the week ahead will see further drying for the newly established drought in C Minnesota, further moisture and some flooding in soggy Illinois and Missouri, and further cold weather in the WCB and Northern Plains, says Allen Motew of QT Weather.

Building heat will soon become an issue in the extended range for the Delta, southern Plains and southern Corn Belt while favorable moisture will cross the developing dry areas of Nebraska, SE Minnesota, Wisconsin and W Iowa, he adds.

Argentina remains dry and wheat plantings there continue to lag.

Wall Street is expected to open lower, following European and Asian markets, consolidating recent gains.

Early calls for this afternoon's CBOT session: Corn 4 to 6 lower, Soybeans 8 to 10 lower, Wheat 10 to 12 lower.