Market Bites

Morocco is tendering for up to 600,000 MT of wheat according to some reports. There are apparently some financial inducements available on US wheat that aren't applicable to other origins. This may help at least some of the tender to be won by US sellers.

Iraq are also in the market for 100,000 MT of wheat and Bangladesh is to tender for 60,000 MT of wheat for Nov/Dec delivery.

Kazakhstan say that this years grain harvest will total almost 21 MMT in bunker weight, and that the country will export 9-10 MMT of grains in the 2009/10 marketing year.

Late rains in India might help winter wheat plantings this month, as every cloud has a silver lining. However summer rice production in key state of Andhra Pradesh might be down as much as 30%. Summer soybean output in the states of Madhya Pradesh and Maharashtra is also being hit by late season floods just as the crop is ready to be harvested.

It's a new month so that means another BoE meeting of the MPC Thursday. No changes are expected to interest rates or the level of QE just yet.

The dollar is down after poor jobs data Friday, and as G7 finance ministers stayed silent on the recent weakness in the greenback at their summit in Istanbul over the weekend. The pound has just popped back above $1.60.

The overnight eCBOT market is narrowly mixed, with a weak dollar supportive but recent crop estimates from Informa and FCStone likely pointing to an upward revision in US production numbers from the USDA on Friday.