Overnight developments in the grains markets

Beans are around 10c lower this morning, dragged down by soyoil which is 30-50 points lower on weaker crude. The CFTC's investigation into speculative manipulation in the crude markets, has also spread to cotton (see Saturday's post on this blog).

This could bring further spec liquidation in crude this week pressuring soy & corn. In addition ideas that the CFTC may intorduce some new rules governing spec "investments" across a broad range of commodities including grains may also cap gains until the waters have cleared.

Corn is a couple of cents lower and wheat around unchanged. As well as planting progress, the USDA will issue it's first crop condition report of the season after the close tonight. Trade ideas are that corn good/excellent will be nowhere near the 70% average for this early in the season.

Crude is $126.95/barrel and the pound is down to $1.96 with the Bradford & Bingley woes rekindling concerns over the health of the housing and financial sectors.