eCBOT Close, Early Call

The overnights closed lower, with soybeans leading the way crashing around 30 cents easier, corn closed around 6-10 cents lower and wheat down around 6 cents. It is worth noting that the day after the 4th July holiday there is often a strong sell-off on beans and corn.

Beneficial weekend weather and a favourable forecast for the week ahead were bearish influences this morning, as too was a firmer dollar and weak crude oil.

US jobs data late Thursday is still weighing on the market today. US job losses surged by more than expected to 467,000 in June, pushing the unemployment rate to a new 26-year high of 9.5 per cent, that indicates that demand for crude oil from the world's largest consumer is unlikely to pick up anytime soon.

Crude has been as low as $63.40/barrel this morning, almost $10 below it's recent high set only last Tuesday, and currently resides at $64.19/barrel.

The jobs data also prompted a flee to safety on ideas that the recession is far from over and that those green shoots are really banana skins. That gave the dollar a boost, further hurting the grains sector.

Tonight we get the latest crop progress and condition reports from the USDA, with things generally expected to be in pretty good shape, expect increases in good/excellent for both corn & beans. We will also get to know just how far the winter wheat harvest has progressed.

After that attention will shift to Friday's WASDE report.

Old crop beans keep pouring out of America, and Brazil too for that matter who exported over 6 MMT in June alone. Meanwhile late last week the USDA reported 600,000 MT of new crop sales to China plus 152,400 MT sold to 'unknown'.

Clearly current prices aren't rationing demand too much just yet, and a late US harvest could still see a sting in the tail from old-crop.

The potential is there for ending stocks to dip below a very tight 100 million bushels on beans, although I think it unlikely that the USDA will be able to bring themselves to come out with a number that low.

The wheat market is heavily oversold, leaving it vulnerable to a corrective bounce at some point. Harvesting is underway in Russia and Ukraine and parts of Europe which will undoubtedly bring some pressure, although lower production is expected across much of the region.

In a widely expected move, India removed its 20-month ban on exports of wheat, saying it will allow 900,000 MT of exports by state-owned trading companies.

Saudi Arabia bought 440,000 MT of EU, US and Canadian wheat over the weekend.

European equities are lower, and Wall Street is expected to follow suit after closing 223.32 points down on Thursday.

Early calls for this afternoon's CBOT session: corn called 8 to 12 lower; soybeans called 30 to 35 lower; CBOT wheat called 5 to 7 lower.