Early Call On CBOT

The overnights closed with wheat leading the way 6-7c higher, beans were up 1-2c and corn down 1-2c.

Crude oil is lower, as too is the US dollar.

The USDA reported weekly export sales for wheat of 1,024,100 MT vs expectations of 750 to 950 TMT, that total included 83,300 MT for Egypt.

Corn sales were 1.658 MMT vs expectations of 1 to 1.3 MMT. Unknown destinations took 848,300 MT of new crop.

Soybean sales were 613,917 MT vs expectations of 700 to 900 TMT. China took 175,000 MT of the new crop.

FCStone last night reduced their prospective corn yield for 2010 by 2.9 bu/acre to 162.9 bu/acre, pegging the crop at 13.195 billion bushels. For beans they reduced yields by 0.5 bu/acre to 43.5 bu/acre, placing output at at 3.390 billion bushels.

Neither number was a huge surprise, if anything they were possibly not reduced as much as some had expected.

For corn 160 bu/acre is being widely accepted as where this crop really is. But then again, that was the case a year ago too when we ultimately finished up with a 164.7 bu/acre "surprise". In some ways you could make out a case for conditions overall being better than last year, at least the crop was planted in a timely manner.

Wheat prospects in Western Australia may have improved following rains this week, whilst bumper output is expected in the east.

The Rosario Grain Exchange peg the Argentine 2010/11 wheat crop at 9-10.5 MMT, lower than many other estimates, but still well up on last season's 7.5 MMT crop. Meanwhile corn output there could be a record 26 MMT next season.

The USDA have just reported 120,000 MT of corn and 100,000 MT of soybeans sold to Egypt under the daily reporting system.

Early calls for this afternoon's CBOT session: corn steady, beans 3-4 higher, wheat 4-5 higher