eCBOT Close, Early call

The overnight markets closed a tad lower with beans down around 4-5 cents and wheat & corn 2-3 cents easier.

The US harvest is doing more than just lagging, it's performing like a sloth on tranquilisers.

Rain is back on the radar screens this morning, with the latest GFS model indicates heavy rain in the entire grain belt, except in parts of Michigan and Ohio, say Martell Crop Projections. Damp and cool conditions are present across the Northern states, reducing drying prospects as well as hindering harvest attempts.

Wheat seems to be, if anything, the stronger of the main protagonists. The late harvest for beans and corn will affect winter wheat plantings. The unwinding of large spec fund shorts on wheat against longs on beans and corn has probably also got a lot to do with it.

Export business is still fairly thin on the ground. Taiwan purchased 73,840 tonnes of US wheat overnight. Japan are expected to buy 133,000 MT of wheat tomorrow, of which 91,000 MT will be US origin.

Crude oil is almost a dollar down at USD78.25/barrel. The American Petroleum Institute said yesterday that US stocks rose 3.85 million barrels last week. The US Energy Dept are expected to say that inventories increased by 1.5 million when they issue their report later this afternoon.

Wall Street is expected to open modestly lower.

Early calls for this afternoon's CBOT session: corn called 1 to 2 lower; soybeans called 2 to 4 lower; wheat called 1 to 3 lower.