The Morning Vibe

Posted by Nogger - a legend in his own mind at 09:56 | Categorized as

09/09/11 -- Talk of Greece being allowed to leave the euro zone is gathering momentum with the Dutch PM quoted as saying: "Countries which are not prepared to be placed under administratorship can choose to use the possibility to leave the euro zone."

Meanwhile the possibility of an Italian default is also now being discussed. The ramifications of the latter would dwarf those of the former. The euro vultures are circling overhead with the single currency falling to it's lowest level since March against the dollar this morning.

London wheat has opened GBP1.00/tonne lower on front month Nov with Paris wheat EUR1.00/tonne higher as the pound rises above 1.15 against the single currency.

Federal Reserve chairman Ben Bernanke disappointed the market in a speech in Minneapolis yesterday by not hinting at further QE. Barack Obama meanwhile used a televised address to unveil a USD447bn package aimed at reducing unemployment. The opposition Republicans however may be less enthusiastic to help vote it through.

The Farmers Guardian are reporting that UK OSR gross margins will "clearly outstrip wheat as the highest broad-acre combinable crop" for the first time in 20 years for the 2012 harvest.

Encouraged by this year's exceptional yields and lofty ex-farm prices that surely means that plantings will be up again for 2012 I'd guess.

India has agreed to allow private firms to export 2 MMT of wheat for the first time in four years.

By September 7th Kazakhstan had harvested 8.7 MMT of grains off 36% of the planted area with yields up a whopping 80% on last year, according to the Ministry of Agriculture.