Early Vibe

01/11/10 -- The US dollar is going down the tubes with Barack Obama's Democrats expected to take a pasting in tomorrow's mid-term elections. The "black JFK" is suddenly about as popular as hemorrhoids.

The Fed might announce further QE as early as Wednesday, according to some reports, which would likely put the dollar under further pressure.

The BoE's MPC and the ECB also meet this week to discuss monetary policy this side of the pond. Nobody is betting on the ECB increasing QE, but there's one or two in favour of doing just that on the MPC.

Looks like we could be in for another volatile week on the currency front, with the dollar set to be this week's whipping boy.

New month equals new money, at least that's the theory. Certainly with the dollar under pressure the overnight grains have started November in positive mood.

FCStone are out this afternoon with their November US crop estimates and Informa are out tomorrow. Corn yields could be further reduced by both ahead of the USDA's numbers next Tuesday.

Kuala Lumpur palm oil has hit fresh two year highs overnight as heavy rains continue to lash Indonesia and Malaysia.

Iraq are tendering for 100,000 MT of optional origin wheat this week.

London wheat has opened on a steady note, with even Nov12 already trading higher. End user interest is starting to pick up even that far forward as buyers eye the substantial discounts that are on offer for not just next season, but also the one after that.