CBOT Grain and Oil seed Pre Opening Oct 20,2009

December corn was down 1 1/4 cents late in the overnight session.

• Trader taking profit on overnight market.
• EU stock was selling off that weak for commodity too.
• An extremely slow harvest progress rate was also considered supportive to corn along with forecasts of rain that will start moving into the NW Corn Belt later today. This rain will move deeper into the Midwest by late Wednesday and Thursday with amounts expected to be heavy in many areas, and this may bring harvest to a halt in many key areas.
• Volume on Monday trade was around 155,000 contract.
• Open interest increase almost 14,000 contract, new money still flow in to Corn futures.
  
• PPI down 0.6% that mean no sign of inflation which bear for commodity.
• An Israeli group is tendering for 24,000 tonnes of corn and 27,000 tonnes of corn products.
• I think trader would taking some profit today price may open lower.

The December wheat contract was 1/4 cent higher overnight.

• Traders indicate that the recent strength in wheat remains based on short covering by funds and other specs and a lower dollar.
• Support on reported of frost in some growing areas in eastern Australia along with stressful high temperatures in Western Australia.
• Traders report that Algeria bought 300,000 tonnes of wheat for November shipment late last week.
• Egypt's ministry of agriculture said today that they are aiming for 75% self-sufficiency in wheat in 10 years. This would be up from 55% at present. Egypt is currently the world's largest importer of wheat.
• Argentina has chance for rain this week, which benefit to wheat and soybean crop.
• Price may lower from taking profit, pressure from outside market Down Jones, EU Stock, Gold price and Crude Oil is lower.

November soybeans were down 4 1/4 cents late in the overnight session.

• Farmers in Argintina began to plant soybeans this past week and progress should accelerate by early November. Conditions there have been improved by recent rains, but some additional rains would still be welcome. Total planted area is expected to soar to a record near 19 million hectares this year which is nearly 10 times the amount of acreage expected to be planted to corn there.
• The Baltic Exchange's main freight index moved to a 2-month high yesterday on improved demand for the biggest cargo vessels.
• Most growing areas in Brazil have seen scattered showers and thunderstorms over the past 24-36 hours. Further light showers are possible through the end of the week. Soil moisture levels are mostly favorable in the central and southern growing areas, but added moisture would be welcome in the north.
• Traders in Malaysian palm oil are said to be concerned over growing stocks of palm oil in October after stock levels rose to 8-month highs in September that pressure on soyoil prices.
• The Outside factor is important for soybean prices. Open lower on Dow Jones and EU stock put pressure on CBOT prices, Soybean prices twice test for 996-1000 resistance level but buying momentum cannot make it pass though this level, I think tonight price may lower.
• Don't forget high world production of soybean..... is still long term bearish factor.