Early Call On Chicago

Posted by Nogger - a legend in his own mind at 14:21 | Categorized as

06/10/11 -- The overnight grains extended yesterday's upward momentum closing with wheat around 5-7 cents firmer, corn up 3-5 cents and beans 10-12 cents higher.

Weekly export sales from the USDA were 431,200 MT for wheat, bang in the middle of expectations of 350 to 550 thousand MT. They were 741,800 MT for beans, in line with trade estimates of 550 to 850 thousand MT, and almost 1.3 MMT for corn - above trade guesses of 750 TMT to 1 MMT. China took one cargo of the corn.

Elsewhere we've had the USDA announce the sale of 115,000 MT of soybeans to China.

Coceral have raised their estimate for EU-27 soft wheat production by almost 2 MMT and also increased their corn output forecast by almost 6 MMT.

Outside markets are firmer with NYMEX crude up almost a dollar and EU stock markets rising, although both are off earlier highs.

The ECB surprised/frustrated some by leaving interest rates in the eurozone unchanged, the BOE startled nobody by doing likewise. The latter did however increase QE by GBP75 billion.

The market is expected to open higher, but bulls might lack the confidence buy into their own rhetoric given the recent pasting that they have taken.

Early calls: corn up 4-6 cents, wheat up 6-8 cents, beans up 10-12 cents.