04/01/12 -- A morning that started off quietly and slowly now sees front month Jan 12 London wheat down the very same GBP3.05/tonne it was up yesterday and with Jan 12 Paris wheat currently losing EUR4.00/tonne.

So what's made the wheels fall of this one? A German Bund auction found "muted but adequate demand" say Reuters. Which has doubtless served as a timely reminder that the European debt problems have most certainly not gone away.

All eyes will now be on how well, or otherwise, France's EUR7-8 billion offering tomorrow will be received. After that Spain and Italy are both set to hold their first bond auctions of 2012 next week.

The pound is up to 1.2020 against the euro, it's best in a year.

Elsewhere some reports I am reading are suggesting that the GFS model is "turning much wetter" for Argentina next week. We shall see...