Early Call On CBOT

19/10/10 -- The overnight grains closed lower with nearby beans down around 14c, wheat 7-8c lower and corn around 5c easier.

The dollar rose and crude oil fell after China surprised the market with an interest rate hike for the first time in three years.

The inference being put on that by the market is that of a rising yuan, possibly spilling over into general currency appreciation in neighbouring Asia, and the effect on demand for commodities in general.

Tim Geithner meanwhile came out with what now looks like a well-timed statement last night that the US would not allow the dollar to devalue to gain a competitive export edge. Is there some collusion going on here?

The US harvest is well advanced with the USDA last night reporting 83% of US soybeans harvested vs 62% on average, and corn harvesting at 68% done vs 39% normally.

Egypt are tendering for wheat today, and US origin may stand a fair chance of getting the nod.

The Chinese announcement is clearly the big news of the day, with the market expected to open lower across the board, but being particularly bearish for soybeans.

Early calls for this afternoon's CBOT session are: beans down 12-15c; wheat down 6-8c; corn down 3-5c.