Early Call On Chicago

Posted by Nogger - a legend in his own mind at 14:06 | Categorized as

07/03/11 -- The overnight grains closed mixed with nearby months on beans flat to 3c higher, corn up 2-4c and wheat flat to a cent higher.

Crude is up again as the Libyan situation shows no sign of getting resolved. Brent is currently up USD1.60/barrel and NYMEX up USD2.40/barrel.

Dollar weakness may also lend some support to the grains today.

Kansas winter wheat areas look set to get some moisture at long last where "a developing storm will produce some badly needed precipitation. A wave of showers is moving through the state this morning. This will be following by heavy snow a 70-80% chance in the central-northern areas. The GFS model expects .75 inch of moisture in most of Kansas easing severe drought in the top US wheat state," say Martell Crop Projections.

Spring wheat areas in the Northern US Plains and Western Canada remain cold and wet however, they warn.

Iraq bought 400,000 MT of mostly US wheat over the weekend and Mexico booked 150,000 MT of corn.

China says that it has far more wheat than the rest of the world thought - 100 MMT of the stuff no less - the markets reaction to that at the moment largely seems to be "yeah right, who told you that again - Elvis or Sitting Bull?"

Looks like we may be in for a quiet couple of days ahead of Thursday's USDA figures.

Early calls for this afternoon's CBOT session: beans up 2-3c, corn up 2-4c, wheat up 1-3c.