Overnight Markets - Drifting Like An Astronauts Toolbag

Its pretty much a case of same sh!t. different day, with grains lower across the board on a "there is no light at the end of the tunnel" mentality.

Soybeans, wheat and corn are all 2-4 cents lower on the overnight eCBOT market. Drifting along aimlessly, much like an American astronauts toolbag.

The global economic recession continues to be the over-riding factor, over-ruling everything else.

Imagine the effect of Somali pirates hijacking a ship containing 2m barrels of oil back in July when prices were pushing $150/barrel. What happens now, nothing, it has no effect whatsoever and crude slumps through the $50/barrel level.

Meanwhile Washington faces the thorny problem of the US automakers conundrum. Throw good money after bad and chuck $25 billion at it, only to have them come knocking on the dor again sometime down the road. Or, let them go to the wall now, putting millions out of work and deepening the existing recession.

Whichever way, there's pain.


Japan bought 91,000mt US wheat overnight.The Argy wheat crop is expected down around 40% from 16.3mmt to 10mmt. The Australian crop has been hit by rain, meaning more feed grade and less milling.

China has said it will buy 10mmt of corn from local farmers to support prices and boost rural incomes. The US corn harvest continues to lag.

Crude is below $50/barrel now, and the pound is $1.4930.