Early Call On CBOT

The overnight market closed with beans up 5-7 cents, corn 3-4 cents higher and wheat up around 10-12 cents.

The market continues to digest yesterday's USDA data, although so far there seems to be a lack of inclination to retest last week's highs. Things somehow don't feel quite so manic as they did then.

Crude oil is struggling to add any bullish enthusiasm at USD75.66/barrel. Renewed concerns over both the US and world economy are weighing on demand.

The wheat market clearly likes the idea of Russia and Ukraine being more or less withdrawn, but much of the recent surge in activity is probably due to buyers recovering-in existing purchases rather than lots of new eager fresh buying.

Yesterday's USDA WASDE report in reality only trimmed the 2010/11 stocks to usage ratio for wheat from 28.0% to 26.3%. You'd have to say that in the cold light of day a drop of only 1.7 percentage points has already surely been more than factored in?

We also have the spectre of record US corn and soybean production to contend with, along with another potential "bin buster" of a soybean crop to come from South America again in 2011.

Whilst demand is strong, supply is far from struggling to keep up with it.

Early calls for this afternoon's CBOT session: corn up 2-3c, beans up 3-5c, wheat up 10-12c.