Early Call/Reaction To The USDA Numbers

The early call on CBOT, after the release of the USDA numbers is: corn to open 10-15 cents lower, soybeans down 15-20 cents and wheat down 7-10 cents.

The corn and soybean numbers are undoubtedly a bit bearish.

For corn in particular, stocks are seen building due to cutbacks in demand from the ethanol sector and lower exports.

The soybean numbers were not quite so bearish, and we still have the threat of further crop losses in South America, however beans could get dragged down by corn.

For wheat it's a game of two halves, the ending stocks are higher than anticipated, and pressure from corn will weigh on old-crop. For new-crop however the figures were rather bullish showing a much larger than expected reduction in plantings for the 2009 crop to be harvested in the summer.

Crude oil is almost $2.50 lower at $38.37/barrel, so that may also have an influence this afternoon. The market is also still concerned about Friday's weak employment data.