eCBOT Close, Early Call

The overnight grains closed slightly lower with beans down 4-5 cents nearby and 7-9 cents lower further forward. Wheat finished 3-4 cents lower and corn 2-3 cents easier.

Near ideal growing conditions in the US Midwest at the moment seem to be the main driving force today.

Crude oil is steadier though, pushing above $65/barrel, and global stock markets are also firmer, adding some support.

Whilst US crop conditions are favourable, some reports are circulating in the media that hot and dry could be the order of the day for much of August and September.

China's auction of corn reserves started today, and has met with a mooted response. According to Reuters only 13% of the offered quantity in Heilongjiang province was taken up, and only 22% in neighbouring Jilin.

The soybean auction starts Thursday and is largely expected to meet with a similar level of interest.

Bangladesh is looking for 100,000 tonnes of wheat, and Egypt is back in the market for one or two cargoes having passed on Russian wheat in the last few tenders in favour of US and French product instead.

Early calls for this afternoon's CBOT session: corn called flat to 3 lower; beans called 5 to 10 lower; wheat called 3 to 5 lower.