It's All Kicking Off

London wheat was down GBP3 on Monday, GBP4 on Tuesday and is currently down a fiver so far today. The phones are melting as "fear" starts to kick in. Is that wheat chart on the right starting to look spookily familiar?

London wheat is the weakest of the bunch, as the pound rises following news that MPC member Andrew Sentance was in favour of raising interest rates at the BoE's last meeting earlier this month.

Front month November Paris wheat is now flirting either side of the psychologically important EUR200/tonne level. A close below that tonight could inflict some further pain for some of the long holders out there.

Ukraine's seemingly done deal on export quotas now appears to have a question mark hanging over it, as they've announced today that they are deferring a final decision until next week.

China have announced that they will auction off more of their domestic corn reserves on Friday to cool rising prices. That's the first time they've held two auctions in a week for several years.

Widespread talk that the USDA's yield estimates for corn and beans this year are far too high isn't being backed up by the results of the current Pro Farmer Crop Tour. They are finding yields better than last year and above current USDA projections.

Rain has arrived in some parched areas of Russia, and Ukraine too.

Whilst we are far from being out of the woods yet, prices it seems are returning to more realistic levels.

Egypt must be kicking themselves already, and it couldn't happen to a nicer bunch. I don't mind offering my kicking services if they require any help.