Early Call On Chicago
08/11/10 -- The overnight trade closed mostly a little lower in positioning ahead of tomorrow's USDA reports.Wheat finished with losses of 2-3c nearby, with corn down 1-2c and beans off 2-4c.
The dollar is back to pretty much where it was before last week's QE2 announcement from the Fed. Crude oil is slightly lower.
China and Brazil amongst others are voicing their opinions about the Fed seeming to be deliberately undermining the dollar.
The euro is also weak on concerns over Irish debt.
Tonight the USDA will report on harvest progress and crop conditions for US winter wheat. Last week's report showed soybeans harvested at 96% and corn harvesting at 91% complete. Winter wheat was 92% planted and good/excellent conditions were just 46%.
Tomorrow's USDA report will lower corn yields and production and raise slightly that for soybeans. 2010/11 ending stocks will fall for both corn and beans and be about unchanged on wheat. At least that is what just about everyone seems to think.
Soybean planting in Mato Grosso is about 50% done compared with 75% or so normally, with farmers planting round the clock in an attempt to make up for lost time. It's not this season's soybeans they are worried about, it's second "sarfina" crop corn. A crop similar to last season in the 68-69 MMT bracket is what most analysts are forecasting at the moment.
The USDA have just confirmed the sale of 300,000 MT of US soybeans to China.
Early calls for this afternoon's CBOT session: beans down 2-4c, corn 1-2c lower and wheat down 2-3c.
