Nogger's Blog

19/03/12 -- The overnight market has begun the week in negative territory with beans and corn 4-6 cents lower and wheat down 5-7 cents. NYMEX crude is a bit firmer and Brent a little lower.

Weekend weather developments in the US took a turn for the better with Martell Crop Projections saying Midwest temperatures in the upper 70s to low 80s already have soil temperatures "above the 50 F threshold for corn germination, even 4-16 inches deep."

In addition: "Strong thunderstorms erupted early this morning in the southwest Great Plains bringing welcome heavy rain to wheat in southwest Kansas, western Oklahoma and the Texas panhandle."

Also: "The Midwest is expecting welcome rain in Missouri, Iowa, eastern Nebraska and Minnesota. Iowa and Minnesota growers will welcome soaking rain, since the subsoil is badly depleted of moisture. East of the Mississippi River, the forecast is mainly dry this week. Low rainfall, together with heat, is good news for growers in Indiana and Ohio, where the subsoil is already plenty wet," they conclude.

Russia says that there will be no need for it to impose export restrictions on grains during the remainder of 2011/12. Iraq says it has bought 300,000 MT of Canadian wheat and it will tender for more next month.

European debt worries return, with the market now focusing on Portugal and Spain.

Debt isn't the only worry in Europe though, winter kill and drought are also a cause for concern with many now saying that grain production won't rebound from last season's output, but may now actually fall in 2012.

Early calls for this afternoon's CBOT session: corn, wheat and beans all down 4-6 cents.