eCBOT Close/Early Call

eCBOT grains closed sharply higher overnight with soybeans nearly 60c higher, wheat up almost 20c and corn posting gains of around 23-24c.

Bargain hunting returned after recent steep declines on ideas that losses had been overdone. Sharply lower freight rates should also help stimulate export demand, traders said.

The USDA issued a revised October crop production report. As you may remember the Oct 10th report issued a double whammy to beans and corn on a day when the markets were already under pressure from meltdown in world financial markets.

It was felt by many at the time that the numbers the USDA came out with then were simply too high. It would seem that they were right as the revised figures are bullish, particularly for beans cutting production from 2.983 billion bushels in the Oct 10th estimate to 2.938 billion. Ending stocks were also revised lower from 220 to 205m bushels.

Subsequent calls for this afternoon's CBOT session are: Soybeans Seen Up 25-30c; Wheat +8-10; Corn +10-12