The Morning Vibe

Posted by Nogger - a legend in his own mind at 09:37 | Categorized as

26/09/11 -- Greece and it's wretched debt continues to dominate proceedings. The EU/IMF are now talking about writing down 50% of it's debts and increasing the eurozone bailout fund to 2 trillion euros, according the the BBC this morning.

The plan however could take (rolls eyes) "five to six weeks" to implement.

EU stock markets have opened around 1-2% lower, but turned 1% or so higher in early trade.

The IMF also warned over the weekend that it may not have deep enough pockets to rescue larger EU countries than Greece.

Whilst the Greek tragedy continues to make the headlines, the US debt ceiling issue also has yet to be resolved. Just a week away from a possible US government shutdown the Democrat-controlled Senate blocked a Republican House bill to provide stopgap federal funding on Friday.

These are the main issues that will drive the grain markets over the coming weeks. I'm sorry that they don't really have anything to do with grain market fundamentals but that's they way it is these days.

The pound is up to 1.15 (is that all??) against the euro this morning, Globex soybeans are around 13-15 cents lower, with nearby wheat 2-3 cents weaker and corn a cent or so higher. WTI crude oil is a dollar lower at USD78.81/barrel.

Ukraine has done a deal with Bangladesh to supply it with 1 MMT of wheat in 2011/12.

The USDA are out tonight with their crop condition/harvest progress report and on Friday they issue their quarterly grain stocks numbers.