Breaking News: There's A New Cunning Plan

Posted by Nogger - a legend in his own mind at 13:25 | Categorized as

30/11/11 -- Having spent the entire morning negative, the overnight grains markets turned on their heels in the final fifteen minutes of trade to close positive.

The catalyst was a one o'clock announcement that various central banks around the world including the US Fed, the ECB and the BoE were "announcing coordinated actions to enhance their capacity to provide liquidity support to the global financial system."

Sounds awfully exciting doesn't it?

"The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity," say the Fed.

The pound jumped above 1.57 against the dollar, but sank back below 1.17 versus the euro shortly after the announcement.

The stock markets seemed to like the idea with the FTSE100 up over 3% and the German and French markets 4-5% firmer, but they're willing to grasp anything thrown their way at the moment.

Lets see how the grains take it this afternoon. It doesn't sound like a game changer to me though.

Early calls on Chicago are: beans up 5-10 cents, wheat 6-8 cents firmer and corn 3-5 cents steadier.