Nogger's Blog

01/06/12 -- The electronic Globex market sees wheat down 8-10 cents, beans 15-18 cents weaker and corn mostly 5-6 cents easier. It's another broad-based sell-off. World stocks are lower again, with the German DAX leading the way with losses of 3.7%. Crude oil extends its recent decline with Brent more than USD3.00/barrel lower on the day, falling below USD100/barrel for the first time in eight months. NYMEX WTI crude is also more than USD3.00/barrel weaker.

The USDA's weekly export sales were 319,200 MT for wheat, below trade expectations of 350-500 TMT, and well down on last week's 827 TMT. Corn sales came in at just 282,700 MT, again well below the expected 450-650 TMT and last week's 452 TMT (although China did take some old & new crop). Soybean sales of 418,700 MT were also below trade ideas of 450-700 TMT and less than half of last week's 954 TMT. Lacklustre across the board it has to be said.

Eurozone worries continue. The rate of contraction in Spain's manufacturing sector was even worse than Greece's in May, the BBC report.

The pound is down more than a cent against the dollar, which is firmer across the board adding more pressure to the grains.

Weak Chinese manufacturing data is adding to the negative tone.

US weather appears to have delivered less rain than was hoped for/anticipated. Ukraine and Russian rains may not have turned crop losses around either, but as ever, when the funds want out the market is only going to go one way, regardless of the fundamentals. It seems unlikely that the old adage "new month, new money" is going to apply today.