Monday Morning Markets

There's not a lot of change on the overnight grains so far this morning, with wheat up a tad and corn and beans slightly lower. Crude oil is also showing little change.

The dollar continues to run higher following Friday's bullish economic data, currently at around 1.5935 against the pound and 1.39 against the euro.

Argentina is in for a "very wet" week, say QT Weather, with 3 inch totals in many locations. That should allay any fears of losses to soybeans and corn that were just starting to emerge.

One story that grabs my interest this morning is further reports of drought problems in Pakistan potentially affecting wheat production there:

Is nature annoyed with Pakistan?

PAKISTAN: Drought fears for wheat farmers

The first one touches on allegations reported here recently that India is "illegally stealing" water from Pakistan to irrigate it's own crops.

Various reports suggest that Pakistani wheat production might fall to around 19-20 MMT this year, from 24 MMT in 2009.

That's unlikely to be a "market mover" right now, as Pakistan has sufficient carryover stocks to at least cover it's domestic requirements for the remainder of 2010.

It is worth keeping an eye on this situation though, particularly if a shortage of water also starts to affect wheat potential in neighbouring India, where wheat is at the heading stage.