The Early Vibe

22/07/11 -- There isn't a lot to get your teeth into so far this morning. The overnight Globex market is a bit steadier, around 4-5c higher on wheat, beans and corn.

The market is still studying the details of the latest Greek bailout. It seems that the restructuring of the debt will still be termed a default by the ratings agencies. It was also interesting to see Sarkozy say on the TV last night that this was a one-off deal for Greece and not one that would be repeated for any other country within the eurozone.

So where does that leave us? Waiting for the next car crash it seems to me, and there are plenty of them still careering around Europe.

At home, the domestic wheatfeed market is showing signs of cracking. Oct/Apr pellets ex the South East/Midlands having been hovering around the low GBP140's now for some time, but business was reported yesterday at GBP139/tonne with sellers over.

It seems that it isn't just Black Sea grain that is telling us that UK wheat is still too dear despite recent price falls.

After a very wet spring crop conditions in Canada appear to have improved. "Canada weather very favourable for small grains and oilseeds in Alberta, western and central Saskatchewan; recurring showers and moderate temperatures have boosted development of small grains and canola; showers increased the past 2-3 weeks just in time for heading and grain filling; high yields may offset a reduced planted area, not much bigger than last year's depressed crop area; Manitoba and southeast Saskatchewan have been dry and hot in July; heavy rainfall would be welcome; generous rain is predicted in all 3 provinces," say Martell Crop Projections.

Down Under things are switching around from the too dry in the West and abundant moisture in the east. "Disturbing dry weather has lingered in the Eastern Australia this winter season; pockets of Victoria and southwest New South Wales received only half of normal rainfall in the past 60 days; cool night temperatures also have limited wheat growth, lows in the 30s F; Western Australia has fared much better with rainfall in July; above-normal amounts were received the past month; there still is a long way to go to resolve subsoil drought; the forecast continues unsettled in WA, but dry the Eastern Australia wheat states," they add.

I have a feeling that this is going to be a very boring day.