Early Call On Chicago

20/10/10 -- The overnight grains all rebounded from yesterday's declines with beans up 13-15c, corn 8-10c higher and wheat advancing 4-5c.

It's same old, same old as far as I can see with beans potentially the strongest and wheat the weakest leg of the three.

Yesterday's sharp declines in outside markets following China's surprise interest rate hike seems to have been arrested, at least for now.

Crude oil is up, although by less than a dollar and the DJIA looks like opening slightly firmer in line with modest gains in European stocks.

Dryness in the Midwest will have enabled harvest progress for beans and corn to advance even further ahead of normal this week. Some rain in the forecast for HRW wheat areas should enable to newly planted crop to get off to a decent start.

India is shaping up like having a record wheat crop this season, with a decent soil moisture profile as planting gets underway and more modern varieties going into the ground. The government there have raised the support price for wheat to help ensure that planted area is maintained.

China are back in the market for soybeans again, buying 180,000 MT today report the USDA. As you will have noticed this has rapidly become a daily event now.

US wheat got a decent look-in in Egypt's wheat tender yesterday, although it was far from a landslide victory.

Early calls on this afternoon's CBOT session: Beans up 10-15c, corn up 8-10c, wheat up 2-4c.