The Morning Vibe

23/11/11 -- It's a sea of red again this morning after what can only be described as a feeble attempt to stop the rot in Chicago last night.

The overnight Globex market currently sees Chicago wheat around 6-7 cents lower, with corn down around 5 cents and beans falling 16 cents. Beans and meal are trading at fresh lows not seen since October 2010 and corn and wheat are very close to their 2011 front month lowest closes of 5.87 3/4 and 5.84 1/2 respectively.

Funds continue to desert corn in particular, having jettisoned an estimated 79,000 lots (10 million tonnes) of their length in the last two weeks. First notice day on the December contract is only a week away, which may be encouraging a few to get out of the nearby contract.

The repercussions of the eurozone debt crisis are being felt around the world, with new figures out this morning showing Chinese manufacturing activity falling to a 32-month low in November. Europe is of course their largest export home.

US debt problems are now also back in the limelight.

Looks like we can expect further declines for London wheat this morning. Let me see now, where did I put that box of 3's....