The Vibe

09/05/11 -- It's all looking bullish again this morning, with the overnight grains sharply higher led by wheat which is up 14-16c. We've got 100 degree heat and 35mph winds for the southern Plains today, according to QT Weather. That could finish off HRW wheat there.

It's been a mixed weekend across the UK and Europe. Here in North Yorks we got 3.3mm of rain on Thursday, Fri zero, Sat 2.5mm & Sun 10.2mm according to a local weather station. Unfortunately farmers in the East Anglian breadbasket weren't so lucky from what I am hearing.

Northern France, Germany and Poland remain too dry, with spring barley and rapeseed suffering the worst, although some irreversible damage must also have been done to wheat.

NYMEX crude oil is back up above USD100/barrel this morning, whilst metals and most other outside markets are also higher.

The fundamentals feel bullish again, but that doesn't rule out a setback if further fund money long liquidation and rebalancing resurfaces.

We've also got the USDA out on Wednesday with their latest supply and demand numbers, so there's always spanner in the works potential there.

All in all, another interesting week lies ahead.