Overnight Market Developments

The eCBOT market is a little higher overnight with beans up around 10-11c, corn around 2-3c firmer and wheat around 1/2c higher.

Corn and wheat crops were damaged by an overnight freeze in Argentina, analysts say.

Eduardo Sierra, the weather forecaster for the Buenos Aires Cereals Exchange, said that the cold had harmed newly planted corn in Buenos Aires province.

Almost 750,000 acres were affected, with one farmer in the northern part of the province lost 80 percent of his crop, according to Sierra.

The area planted with the 2008-09 corn crop in Argentina will be the smallest in more than a decade after dry weather and government export restrictions discouraged farmers, the exchange said Nov. 14. Wheat output may drop 36 percent to 10.5 million metric tons, from 16.3 million tonnes in the 2007/2008 season, the exchange said.

Other analysts put the wheat crop potentially even lower in the 9-10 million tonnes bracket.

Although the Australian wheat harvest is now well under way, growers are reluctant sellers at current levels. Harvest progress in southern Queensland is estimated at 70% complete, and around half done in northern NSW, where farmers are keen to get the crop in as locusts descend on the region. See video here

Crude is a tad lower ahead of stocks data from the US Energy Dept due later today. the figures are expected to show stockpiles increasing by around 1m barrels as fuel demand in the world’s largest user declines. At 8.45am London time December crude was 14 cents lower at $54.25/barrel.

The pound is little changes at $1.4980 before the Bank of England releases minutes of its meeting on Nov. 6, when it cut interest rates to the lowest level since 1955.