eCBOT Close/Early Call

eCBOT grains closed higher, with soybeans once again leading the way, as the weather situation in South America goes from bad to worse.

Soybeans closed the overnight session around 15c higher, with wheat and corn both around 8c firmer.

Certainly there looks like there is little relief in store for Argentina over the weekend with no rain in the forecast for the main growing areas (circled in red):

It's not all roses in North America either, with freezing temperatures there also threatening crops.

Whilst soybean sales to China continue at a strong pace it looks like any downside will find support. It should be borne in mind however that the Chinese are normally active buyers at this time of year, building stocks ahead of the Lunar New Year holiday. Once that is upon us they usually disappear completely from the market.

Early calls for this afternoon's CBOT session: Corn Up 7-9c, Wheat Up 6-8c, Soy Up 12-15c.