eCBOT Close, Early Call

The overnight grains closed sharply higher, with July soybeans pushing through the magical $12 mark, setting an eight month high of $12.04 3/4 before closing just shy of that at $12.01 1/4 for a gain of 17 1/4 cents. July wheat closed near a four month high at $6.50, 12 3/4 cents higher, with corn also near four-month highs at $4.41 3/4, up 5 1/2 cents.

A sharply weaker dollar, firmer crude oil and optimism that the global economy might be turning round added strength to the grains. Fund money also appears to be returning to commodities, with the promise of better financial returns than other sectors.

Crude oil broke through $68/barrel, despite the supply and demand fundamentals.

For soybeans tight old crop stocks and a potentially harmful drought in China's Heilongjiang province, which has just recorded its lowest May rainfall in almost 60 years, supported the nears.

Chinese soybean futures on the Dalian Commodity Exchange closed 2% higher overnight, supported by evidence that the economy there is continuing to grow.

Meanwhile, rain continues to delay US corn, soybean and spring wheat plantings.

The USDA will report after the close tonight on planting progress, with corn expected to be around 93% done, compared to 98% normally and soybeans around 70% complete, around ten points behind normal. The market will be keen to see how much progress has been made this week in finalising spring wheat plantings too, as well as the condition of winter wheat.

Tonight will also see the USDA's first crop condition report of the season for corn.

Wall Street looks set to open higher despite the news from General Motors.

Early calls for this afternoon's CBOT session: Corn 4 to 6 higher, Soybeans 14 to 16 higher, Wheat 10 to 12 higher.