Early Call On Chicago

The overnight session closed mostly a bit firmer as traders square things off ahead of tomorrow's USDA reports. Beans finished 1-3c higher, with corn up a cent or so and wheat a cent either side.

The dollar is flat and crude oil a bit steadier. The American Petroleum Institute yesterday indicated that US crude oil inventories fell by a hefty 7.3 million barrels last week, due to weather disruptions in the Gulf. The Energy Dept are out with their assessment of stocks at the opening of CBOT, we could see crude move higher should they concur with the API.

Although a relatively quiet session would be the norm ahead of the USDA report, the somewhat shocking underlying strength displayed by the European market in the past ten days or so should lend some support.

Despite all the talk of port congestion in China, they were back again today with the USDA reporting another sale of 116,000 MT of old crop soybeans. That is going to keep the front-end supply side nice and tight, with the USDA already expected to cut 2009/10 ending stocks in tomorrow's numbers.

Although there aren't too many problems with the weather in the US, it is too wet in many areas. That might trim yields a little and also delay the harvest, not ideal when old crop stocks are as tight as they are and China keeping knocking at the door.

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