The Daily Sheet

27/06/12 -- The electronic grains see beans and corn both around 8-10 cents higher and wheat down 2-3 cents. Crude is 28 cents weaker at USD79.08/barrel.

Early grain harvesting has begun in the south of Russia. Wheat quality is good, but yields are not I am told. Barley yields are also poor, although as ever it is often the worst of the crop that gets harvested first.

India is actively trying to find buyers for it's very large wheat surplus, aided by a weakening rupee.

The European debt crisis continues. In what could be a hint towards a full-blown national bailout request the Spanish Prime Minister has said that they cannot afford to finance themselves for long at current rates.

Yields on 10-year Spanish bonds are nearing 7%.

The EU leaders summit gets underway tomorrow. Germany appear to be holding most of the picture cards. German Chancellor Angela Merkel yesterday said that the idea of jointly-issued debt wouldn't happen "as long as I live" which would appear to knock that one on the head for the time being.

How the crisis can be resolved whilst the Germans play hardball is difficult to envisage. Some experts foresee a German exit from the eurozone as the best way out of an increasingly difficult situation. The rest of the bloc can then get the printing presses out and hey presto!

Of course that would lead to a sharp drop in the value of the euro, and likely make a new deutsche mark a highly desirable currency. Neither of which would aid German exports to its neighbours, which wouldn't be in Germany's interest.

And so we continue to go round in ever decreasing circles.

Revised US weather models this afternoon will be eagerly awaited. Yesterday's GFS model was showing decent rains from southern Minnesota, through Iowa and into northern Illinois in the 4-7 day period. It is noted though that other models were offering far less precipitation, and that recent GFS forecasts have largely failed to deliver.

StatsCanada are out later with their planting estimates for 2012. The market is expecting an all wheat area of 23.9 million acres (+11% on last year), a barley area of 7.9 million acres (+22%) and a rapeseed area of 20.9 million acres (+11%).