Early Call On Chicago
03/06/11 -- The overnights closed mixed with beans and wheat around 3-5c firmer and corn 1-2c lower.Jobs data just out from the US is being described as "horrible" and "shockingly bearish" by some. US non farm payrolls rose by only 54,000 last month, well below expectations of an increase of around the 165,000 expected in a Bloomberg survey.
US unemployment rose from 9% to 9.1%, analysts had expected a fall to 8.9%.
On the back of those numbers crude oil is down USD1.65/barrel to USD98.75/barrel on concerns that the US may be heading for a double dip recession, backed up by news of US house prices falling to 2002 levels. Wall Street is expected to open lower on the news too.
The question this afternoon is can the grains sector ignore these outside influences?
Yesterday was all about fund money as they weighed in for an estimated 12,000 corn, 6,000 beans and 3,500 wheat contracts. Will they have the stomach to be back for more today ahead of the weekend?
Paris wheat is a little lower on the back of forecasts for fairly widespread rain for France and Germany over the weekend. If the funds don't show up this afternoon then we could be heading lower I'd suggest.
Weekly export sales numbers from the USDA were all within trade expectations, although it is notably that soybean sales have fallen away sharply of late.
Early calls: wheat and beans up 3-5c and corn unchanged to 2c lower
