Nogger's Blog

06/10/11 -- The overnight grains are firmer, with Globex wheat up 12 cents, corn up 8-9 cents and beans 17-18 cents firmer. European markets have joined in the fun with Nov11 London wheat GBP2.50 firmer in early trade, now back up above the GBP150/tonne mark.

NYMEX crude, which gained USD4/barrel yesterday, has added more than a dollar this morning with stocks rising to on yet another bout of optimism that Eurozone leaders, like Baldrick, have a cunning plan.

I think that personally I'd actually have more faith if Baldrick himself was at the helm to be honest with you. How long has this Greek thing been rumbling on now? If they haven't managed to sort the job out by now then I don't see why things should be any different this time round.

Meanwhile we've got the whole Italian Job about to kick off.

For today though we've got the BoE possibly set to announce more QE later this afternoon. The market seems to think that this is a good idea and will no doubt rise if it does unveil a widely-touted extra GBP50 billion "stimulus package". The others have failed, so why should this one which at GBP50 billion would be the smallest of the three, do anything different?

The BBC say that "reports that European banks will be recapitalised, and also that they will face more thorough stress tests, helped restore some confidence to markets."

Why that should give anyone confidence is beyond me. Solving debt by creating more debt, hmmmm? And the more stringent that the stress tests are then more likely they are to fail them I'd have thought.

The ECB are also due to pontificate today, with many now calling for a reduction in interest rates in the eurozone, as if that is going to make a deal of difference either.

The financial markets are so desperate for a quick fix that they want to believe it can and will happen if you ask me. Unfortunately I don't however.

Grains will continue to be dictated to by and mirror these outside markets for some time yet I feel.