Lunchtime News

13/06/12 -- The latest 5-day weather forecast from the NOAA (National Oceanic and Atmospheric Administration) shows potentially very decent rains for the Western Corn Belt (click map to enlarge).

Rains are concentrated over the top US corn state of Iowa, with the third and fourth top producing states of Nebraska and Minnesota also in line for a decent soaking.

The same three states are ranked joint top, fifth and third (in that order) as soybean producers too.

Dryness however looks set to continue further east into Illinois, Indiana and Ohio.

In the electronic market corn and soybeans are lower on the news, dragging wheat down with them.

Wheat was 6 cents higher earlier on news that ABARES has pegged the 2012/13 Australian wheat crop at 24.1 MMT, down 18% on last year.

Further forward there is some talk of a strengthening El Nino in the Pacific leading to cooler and wetter conditions to prevail later in the summer.

Meanwhile the European debt crisis rumbles on with the Greek elections looming on Sunday. Yields on Italian one year bonds have jumped from 2.34% a month ago to 3.972% today. That's bad ahead of them auctioning longer-term 2015, 2019 and 2020 debt tomorrow.

Spanish 10-year yields are at 6.72% and the German press is apparently reporting that Greece could be in need of a third bailout soon.