Overnight Developments
The dollar is sharply lower this morning after the Fed hinted last night that it may be prepared to print more money "to support the economic recovery" if necessary.
Gold pushed to fresh all-time highs on the back of the news, and crude oil rose above USD76/barrel as the dollar declined.
By the close of play though crude had fallen back, and currently stands at USD75/barrel after a report by the American Petroleum Institute showed inventories rising. The US Energy Dept are due to release their stocks figures later this afternoon.
The sharply weaker dollar is supportive for the overnight grains, which have largely reversed most of, if not all, of last night's losses.
Egypt are tendering today for hard wheat, which rules out France, so the US stands a good chance of getting a foot in the door, especially in the light of a falling currency.
London and Paris wheat may open a little lower following last night's CBOT losses and a firmer sterling and euro.
Russia's Ag Minister says that the country has harvested 54.3 MMT of grains so far, off 80% of the planted area. Even allowing for some abandonment (and the fact that this is a bunker weight figure) that would suggest a total clean grain harvest somewhat better than the 60 MMT figure in the market.
That may suppress some of the raging bulls enthusiasm, given the Russian PM's statement yesterday that exports may be back on the cards once the final harvest totals are in. Although that still seems unlikely, current price levels will be looking pretty tempting.
Another thing for the bulls to consider is increased talk of regulation on spec activity in the EU futures markets. We're still a little in the dark about what form that may take, and when it may be introduced. It is worth noting, as Agrimoney.com point out, that the French are particularly vocal (as usual) on this issue and they take the G20 chair in 2011.
Gold pushed to fresh all-time highs on the back of the news, and crude oil rose above USD76/barrel as the dollar declined.
By the close of play though crude had fallen back, and currently stands at USD75/barrel after a report by the American Petroleum Institute showed inventories rising. The US Energy Dept are due to release their stocks figures later this afternoon.
The sharply weaker dollar is supportive for the overnight grains, which have largely reversed most of, if not all, of last night's losses.
Egypt are tendering today for hard wheat, which rules out France, so the US stands a good chance of getting a foot in the door, especially in the light of a falling currency.
London and Paris wheat may open a little lower following last night's CBOT losses and a firmer sterling and euro.
Russia's Ag Minister says that the country has harvested 54.3 MMT of grains so far, off 80% of the planted area. Even allowing for some abandonment (and the fact that this is a bunker weight figure) that would suggest a total clean grain harvest somewhat better than the 60 MMT figure in the market.
That may suppress some of the raging bulls enthusiasm, given the Russian PM's statement yesterday that exports may be back on the cards once the final harvest totals are in. Although that still seems unlikely, current price levels will be looking pretty tempting.
Another thing for the bulls to consider is increased talk of regulation on spec activity in the EU futures markets. We're still a little in the dark about what form that may take, and when it may be introduced. It is worth noting, as Agrimoney.com point out, that the French are particularly vocal (as usual) on this issue and they take the G20 chair in 2011.
