Nogger's Blog

15/09/11 -- The overnight grains finished with wheat and corn 5-7 cents lower and beans down around 3-5 cents. Crude is half a dollar firmer.

Weekly export sales for 2011/12 came in at 413,500 MT for wheat (against expectations of 300 to 600 TMT), 1,127,300 MT for corn (400 to 700 TMT) and 351,900 MT for beans (400 to 600 TMT). There was also 41,100 MT of corn sold for delivery in 2012/2013 to Japan.

So corn sales were strong, wheat sales so so and bean sales a bit disappointing.

Frost did occur in the eastern Dakotas and Minnesota overnight, although crop damage is expected to be minimal.

US wheat was a "no show" for the second week running in Egypt's latest tender yesterday where prices were down around USD12/tonne on last week.

The trade feels somewhat lethargic today. There's a bit of optimism surrounding Greek debt and European stocks are higher yet grains look like they couldn't buy a rally at the moment.

Front month beans have lost almost 70 cents since the end of August, with corn down nearly 40 cents and wheat falling 45 cents in the same timeframe. The weight of length stacked up on corn in particular leaves the market vulnerable to further price corrections once sell stops start to get triggered.

"When it's obvious to everyone that corn can only go one way, then it's obviously time to get out."

Early calls for this afternoon's CBOT session: beans and wheat 4-6 cents lower, corn down 2-4 cents.