Nogger's Blog

30/05/12 -- The overnight grains see beans around 10 cents lower, wheat down 7-8 cents and corn narrowly mixed. EU grains are lower across the board too as Spanish banking jitters weigh.

Spanish government borrowing costs are now around 6.5% and the Madrid stock market has hit a nine-year low today. The Bank of Spain governor resigned yesterday, a month before his scheduled departure.

Meanwhile a new opinion poll out today shows that the left-wing Greek anti-austerity SYRIZA party have regained the lead over the pro-bailout conservatives.

NYMEX crude is USD1.33/barrel lower at USD89.43/barrel. Brent is down a cent short of USD2.00/barrel on denials that China is planning a large new stimulus package to reactivate growth.

The head of the Russian Grain Union says that the country will harvest around 56 MMT of wheat this year, similar to last season's production and in line with the USDA's estimate earlier this month. What isn't in line with the USDA though is his forecast for wheat exports of around 22-23 MMT, that's 4-5 MMT more than Washington currently estimate.

Awash with wheat India is said to be currently loading 100,000 MT at it's western port of Kandla bound for the Middle East and Africa circa at prices said to be around USD255.00/tonne FOB. Expect them to remain keen exporters following their third record wheat harvest in a row and limited storage capacity.

The EU Commission says that it will decide on whether to extend the temporary suspension of import duties, brought in last June, on feed wheat and barley before they expires at the end of next month.

Despite another decline in US winter wheat crop ratings in the top producing state of Kansas last night early yield reports are generally favourable. Spring wheat good/excellent ratings jumped five points to 79%.

Corn good/excellent fell five points to 72%, soybean ratings won't be out until next week. There are some fairly vocal reports out there of corn stress due to lack of rainfall and high temperatures.