Early Call On Chicago

Posted by Nogger - a legend in his own mind at 13:34 | Categorized as

20/12/10 -- The overnight grains began the week in bullish mood, with beans and wheat ending around 10-12c higher and corn up 4-5c.

Crude oil is around half a dollar higher and the US dollar broadly unchanged.

The outlook for Argentina is for the most part hot and dry. Weekend rains totalled 1-3 inches in Santa Fe and Santiago del Estero, 0.50-1.25in. in Entre Rios, and 0.15-0.60 in Cordoba, Buenos Aires and La Pampa, say QT Weather.

The week ahead will see rains continue in the far north, with heat rebuilding and no rain until Thursday in the south. Temperatures will remain above normal reaching 95-
100 degrees most areas, they add.

Mixed reports continue to come out of Australia, with some suggesting that the 50-60% downgrades to wheat in the east might be overstated.

China has asked it's millers producers to cap flour prices until Chinese New Year in February. There are some ideas that this will lead to reduced demand for wheat, as we appear to be seeing with soybean demand after restrictions were introduce on soyoil prices.

Early calls for this afternoon's CBOT session: beans up 10-12c, wheat up 8-10c, corn up 3-5c.

Bearing in mind that a long holiday and month & year end is looming further profit-taking could be on the cards this week. Even if we do close higher tonight, then there's always turnaround Tuesday to look forward to tomorrow.