Early Call On CBOT

The overnights closed mixed with beans up 1 1/2 to down a half, corn was mostly down a couple of cents and wheat generally 3-4 cents easier.

The dollar is up and crude oil is lower.

The euphoria over China's weekend announcement that it would allow the yuan to appreciate has been short-lived. Most analysts are now saying that only very modest gains will be likely to be tolerated.

Demand from China remains robust, even without any gains from it's local currency, as witnessed by further sales of old crop US soybeans yesterday. Unconfirmed rumours today suggest that they also bought more US corn overnight.

The first US corn cargo of the recent raft of Chinese purchases has however arrived and been cleared by customs without problems, according to media reports.

Last night's USDA reports showed crop conditions declining somewhat, albeit from pretty high levels. Some states showed some pretty steep declines though, which may keep the market a little nervous from pressing the downside too much.

The trade will now be keeping an eye on Thursday's upcoming export sales report, followed by next week's June acreage and stocks reports from the USDA.

"Heavy rain and severe weather will continue to hit the Plains and Corn Belt this week. The latest mid-term outlook now shows a cool-down and soaking rains for the Ohio Valley and Upper Delta as July arrives," according to QT Weather.

The USDA last night said that 16% of soybeans in Ohio remain unplanted, the crop is normally 100% done by now.

Early calls for this afternoon's CBOT session: Corn called 1 to 3 lower; Soybeans called mixed; Wheat called 2 to 4 lower.