What Have You Missed Over Christmas?

Quite a lot actually. Dry areas in Brazil and Argentina didn't get the rains that were in the forecast Christmas Eve through to Boxing Day, leading to some quite sharp gains in Chicago.

There is also some speculation that the funds might be about to jump back into the grains market in the new year. With interest rates close to zero, crude oil on the floor and stocks looking decidedly shaky maybe the ags offer the best of a bad bunch at the moment?

Golden Sacks and Barclays Capital are both reportedly recommending gold, agriculture and livestock as the markets to be into in 2009. Ag futures are the best “defensive” bet among commodities, say Golden Sacks, citing global population growth. For once a not entirely implausible argument, and one endorsed by Nogger Securities Inc.

London wheat also closed with some fairly impressive gains Christmas Eve as the pound continues it's decline against the euro. With some lower predictions now filtering through for the global 2009/10 crop, Nov09 onwards gained GBP2 to GBP2.50/tonne.

Unlike our own, the US markets were also open on Boxing Day.

For the record, here's a list of front-month closes that you may have missed:

Market Xmas Eve Boxing Day
CBOT Soybeans +14 3/4 +36
CBOT Soymeal +6.50 +9.80
CBOT Soyoil +10 +151
CBOT Corn +3 1/4 +14 1/4
CBOT Wheat +7 +17
LIFFE Feed Wheat +1.60 N/a
Paris Milling Wht -0.25 N/a
Paris Corn +1.50 N/a
Paris Rapeseed +0.25 N/a