The Morning Vibe

20/12/12 -- It's a sea of red again this morning, with beans showing double digit losses down 12-14 cents, corn 6-8 cents lower and wheat down 10-12 cents.

Wheat has fallen below USD8/bushel and corn is now under USD7/bu on heavy fund liquidation.

It all looks like pre-Christmas, month-end, quarter-end, year-end, let's all jump off the fiscal cliff together like Thelma and Louise end of the world-end book-squaring.

In fact talking of the fiscal cliff the nice people at Saxobank have come up with a infographic to explain it all to you here.

This particular current demise has little to do with grain market fundamentals.

Syria has bought 100 TMT of wheat of unspecified origin. Morocco has bought 185 TMT of the same.

The Moroccan government have said that they are to extend the zero duty tariff on soft wheat imports until the end of April 2013. Their Jun/Nov imports are up 63% at 2.79 MMT.

Egypt meanwhile bought 290 TMT of US wheat yesterday.

This afternoon's USDA weekly export sales report will be of particular interest to see if soybean sales remain buoyant after the Chinese cancellations that were reported earlier in the week.

It will also be interesting to see how US wheat sales fare, is demand finally switching there? And is there any demand at all for US corn?