Disaster Averted?
27/09/11 -- The market seems to think that everything in the garden is once again rosy this morning.For one, rumours are rife that there's something in the wind from the EU/ECB/IMF that is going to sort out the European debt crisis. Nobody really seems sure what format it's going to take, where the money is going to come from or who is going to be left swinging but a deal is on the way that's for sure. Possibly.
And for two, the US Senate approved a resolution to keep the government there funded until Nov 18th. The deal now needs House approval. "We've averted a disaster, until the next one," Democratic Senator Ben Nelson told Reuters.
I somehow sense that neither problem has gone away for good. Or even for very long.
Germany are set to vote on Thursday on whether it's a good idea to keep on buying bonds from the likes of Greece, Italy and Spain. The ECB and IMF are due in Greece this week to see how they are getting on cutting their budget deficit in order to comply with the rules for getting their next tranche of bailout money that they urgently need.
The grain fundamentals are bullish though, aren't they?? Not really...
Kazakhstan are on target to bring in their bumper 25 MMT grain harvest, having cut 20.2 MMT so far off 79% of the planted area.
Ukraine has harvested 38.4 MMT of grain so far, also off 79% of the planted area. The corn harvest is now up and running under what Agritel say are "strongly favourable weather conditions."
Russia has harvested 84.7 MMT of grains so far off 83% of the planted area, leaving it well on track to beat the official target of 90 MMT. The Urals district is traditionally the last to bring in the harvest. Here 58% of the crop has been cut with yields averaging 69% more than last year and 43% higher than in 2009.
There's 20-50mm of rain in the forecast in the next couple of days for much of eastern Australia's wheat belt whilst conditions in Western Australia are said to be very promising for a bumper harvest there.