Morning Markets

The overnight markets are mostly higher with wheat and soybeans up 8-9 cents and corn narrowly mixed.

Chinese soybean futures hit yearly highs today as fund money came into the market. The notion that agricultural commodities are "cheap" relative to some other markets like gold, and encouraged that the Chinese government's support program announced last week also underpins things to the downside seems to be attracting some new investment.

The market still looks a bit nervous on the "Dubai jitters" but seems a bit more reassured after the UAE said it would back it's lenders in the event of any Dubai defaults.

That helped crude oil move higher, as too did news of another Somali pirate attack, this time seizing the 2 million barrel capacity supertanker "Maran Centaurus" near the Seychelles.

Gold is having a little rest after hitting all-time highs last week, but is still on track for a 12 percent rise in November alone.

Soybeans are so far displaying little sign of "harvest pressure" as China continues to buy and import US beans at a phenomenal rate, 1.84 MMT of US beans were reportedly shipped to China last week alone.

This is starting to make the USDA's export forecast of 36 MMT for the entire marketing year look well understated even though China will undoubtedly switch heavily into South America in the new year.

Wheat seems to be moving up "just because" - southern hemisphere crops are getting downsized and downgraded with problems in Australia, Argentina, Brazil and Uruguay. US plantings of SRW wheat are well behind, and late planted crops will be more vulnerable to yields losses next summer.