eCBOT Close/Early Call
Grains closed lower, just to be consistent, on the overnight eCBOT market with wheat giving up most of last night's gains 7c lower, soybeans down 2-3c and corn 1-2c easier.
Global recession fears mounted after the US Treasury backed away from using a $700 billion bailout fund to clean up bank balance sheets of bad mortgage debt and a spree of gloomy economic and corporate news battered the markets.
US Treasury Secretary Henry Paulson said in a speech last night that he was backing away from buying troubled mortgage assets and would focus on the capital needs of both banks and non-bank financial institutions.
The Bush administration have been under heavy pressure recently to bail-out troubled US car makers GM, Ford and Chrysler. President elect Barak Obama is also said to be in favour of the move, in an attempt to stave off more job losses, with US unemployment already running at 10.1 million.
Crude oil fell to a 22-month low below $55/barrel, adding to the bearish pressure on grains.
A downturn in meat consumption around the world has also hit demand for US corn, along with an ailing US ethanol industry that relies on corn as a feedstock.
Record world wheat production, and the beginning of the Australian harvest are also bearish factors.
Japan today bought 100,000mt US wheat in a routine tender.
Early calls for this afternoons CBOT session: Corn futures are expected to open 1 to 3 lower; soybeans 2 to 4 lower; wheat 5 to 8 lower.
Global recession fears mounted after the US Treasury backed away from using a $700 billion bailout fund to clean up bank balance sheets of bad mortgage debt and a spree of gloomy economic and corporate news battered the markets.
US Treasury Secretary Henry Paulson said in a speech last night that he was backing away from buying troubled mortgage assets and would focus on the capital needs of both banks and non-bank financial institutions.
The Bush administration have been under heavy pressure recently to bail-out troubled US car makers GM, Ford and Chrysler. President elect Barak Obama is also said to be in favour of the move, in an attempt to stave off more job losses, with US unemployment already running at 10.1 million.
Crude oil fell to a 22-month low below $55/barrel, adding to the bearish pressure on grains.
A downturn in meat consumption around the world has also hit demand for US corn, along with an ailing US ethanol industry that relies on corn as a feedstock.
Record world wheat production, and the beginning of the Australian harvest are also bearish factors.
Japan today bought 100,000mt US wheat in a routine tender.
Early calls for this afternoons CBOT session: Corn futures are expected to open 1 to 3 lower; soybeans 2 to 4 lower; wheat 5 to 8 lower.
