Early Call On Chicago

19/07/11 -- The overnight grains were all higher, reversing yesterday's losses in a typical Turnaround Tuesday. Wheat was 20-25c higher nearby, with corn up around 18-20c and soybeans 10-12c firmer.

Crude is a dollar and a half firmer and the USD a touch weaker. Gold has hit a new record high of USD1,609.51 an ounce.

The market is getting excited about corn ratings dropping 3 points good/excellent and soybeans by two in last night's USDA conditions report. The bulls are banging on about damage caused by this week's "heat dome" although some see that hanging around a bit longer than anticipated, others still see that breaking down by the end of the week.

The USDA have confirmed the sale of 110,000 of soybeans to unknown.

Why wheat should be up 25 cents when it is already way overpriced compared to offers out of the Black Sea is beyond me.

Also, in the case of wheat, it seems that the current USDA numbers are likely understated for many of the major producing nations now including Europe, Russia, Ukraine and India. US export potential, raised 2.5 MMT last month, also looks questionable based on current premiums over the Black Sea.

European and US debt concerns remain and still potentially hold the key to long-term market direction combined with a fund willingness, or lack of it, to keep their money in ag commodities.

Early calls for this afternoon's CBOT session: corn up 18-20c, wheat up 20-25c, beans up 10-12c.