Nogger's Blog

29/06/11 -- The overnight Globex markets are firmer across the board building on last night's strength. Front month corn is very close breaking back up above the USD7/bu mark. Crude oil is flat at just under USD93/barrel.

The euro is firmer on the back of hopes that the Greek parliament will push through the required austerity measures. They start debating on the subject at 0700 GMT and will vote at some point later today. There will also be another vote tomorrow on a separate implementation law.

With CBOT wheat closing strongly last night and adding another 10-12c overnight it would seem that European grains will open firmer this morning. With only a small open interest left on July London wheat anything could happen to that.

My Romanian correspondent says that "the combines are rolling in southern Romania, 2-3 weeks later than usual in barley. No yield reports as such. In the north no combines moving yet and won't be for at least 10 days. Significant rainfall through June has for sure benefited wheat and with temperatures also low delaying the ripening. I'm expecting reasonable yields."

Good rainfall in central and northern Western Australia has boosted wheat production potential there. More than 50mm fell in some northern parts of the state in the last seven days and some 20mm in central areas. Southern areas however largely missed out.

Forecasters are giving a daytime high of just 18C today for Perth, with a 90% chance of showers bringing 10-20mm of rain. Further inland rainfall amounts are less heavy but still respectable with Northam having a 90% chance of picking up 5-10mm.

Libyan rebels are active in the world wheat and flour market, according to this report on Reuters.

Frost has hit northern parts of Parana state in Brazil, potentially causing some damage to safrinha (second crop) corn.

Depending on events in Greece it could be a volatile day. Traders are also nervous ahead of tomorrows key USDA data.