It Looks Like It's Not Over Yet Then

Judging by London wheat opening GBP5.50/tonne higher for Nov 10, even Nov 11 is getting in on the act now opening up GBP3.10/tonne.

Seasoned traders are shaking their heads in disbelief at what their screens are telling them.

Ex farm wheat is now into the GBP140's off the combine, with even hitherto friendless barley nudging an unbelievable GBP130 for immediate collection.

FEFAC are begging Brussels to release their 5.7 MMT of intervention barley to cool the situation, but the Commission are staying silent for now. Presumably they are so gobsmacked at the profit they are suddenly going to make that they can barely speak. The temptation to let it run up a bit more yet and put a ruck of money back into the empty kitty must be enormous.

The fact that Russian wheat is still winning the majority of the high profile tenders around doesn't seem to matter, at least someone is still buying even at these sharply higher prices. Let the Russians have the business for now and we will step in when they are sold out at even higher money. That's the prevailing attitude at the moment. Why sell today when it will be dearer tomorrow?

Defaults are suddenly what everyone is talking about, whether it's farmer Giles down the road or entire countries doing the defaulting.

Bearish news is being completely ignored, which is always a bad sign. We are surely well into the mania phase now, enthusiasm is behind us, this my friends is GREED: