Early Call On Chicago

Posted by Nogger - a legend in his own mind at 14:04 | Categorized as

07/01/11 -- The overnights closed lower pressured by anticipated fund reweighting of contracts expected to start today.

Beans finished around 8-12c lower, with corn down 3-4c and wheat generally 7-8c easier.

On the week so far we see March CBOT wheat down 5 1/4 cents, March corn down 27 cents and March beans down 25 cents. It looks like long liquidation will be adding to those losses tonight.

Dollar strength and nervousness ahead of next week's USDA reports may also add some downside pressure. So too may generally cooler and wetter forecasts for Argentina.

China's Henan province remains very dry, with large parts of this wheat growing province reportedly having seen no rain since September, and the entire region getting 86% less rainfall in the last quarter of 2010 than in the same period twelve months previously.

The Chinese sold most of the rapeseed oil on offer at today's government sponsored auction.

The USDA have today reported the sale of 180,000 MT of US soybeans to China for 2010/11 delivery.

Early calls for this afternoon's CBOT session: Beans down 7 to 10 cents, corn down 3 to 4 cents, and wheat down 6 to 8 cents.