Early Call On Chicago
28/03/11 -- The overnight grains closed mostly firmer with beans up 6-8c, and with corn & wheat around 2-4c higher. Fresh news is limited. Libyan rebels have made inroads into Gaddafi held territory over the weekend, aided by NATO, and are now advancing on his hometown of Sirte. Rebels have also announced that they've done a deal wit Qatar to market crude oil from fields under their control in the east. Crude oil is more than a dollar lower on the back of these developments. A firmer US dollar looks like hindering upside potential today.
The market is waiting for direction from Thursday's planting intentions report. Traders are also watching out for any potential further announcements of US corn sales this afternoon, which are being widely touted.
Some limited moisture relief is on the cards for Eastern Kansas later in the week, but the trade is conscious of significant abandonment potential in the state. Ditto Oklahoma and Texas. At least some net drying is on the cards for drowned out spring wheat states to the north.
Safras & Mercado came out with a Brazilian soybean production estimate of 71.5 MMT on Friday, they said that yield losses in Mato Grosso would at least be partially compensated for by bumper crops further south. That corroborates independent reports from "my man in Brazil."
Early calls for this afternoon's CBOT session, ahead of any possible announcements from the USDA on corn sales: corn up 1-2c, soybeans up 6-8c and wheat 2-3c higher.