Morning Developments

The overnights are higher, with news of the Argy farmers kicking off their annual dispute with the government dominating after President Fernandez vetoed part of a bill that had already been passed by the Senate cutting export taxes for drought-affected producers.

Never slow to be off the (road)blocks Argy farmers announced a week long embargo on sales of grains and beef starting Friday.

There is also some talk of El Nino leading to wheat production losses in Eastern Australia. If that isn't bad enough the Australian Plague Locust Commission are apparently warning of widespread infestations September/November.

It's been a busy few days on the export front for a nice change with China booking 110,000 MT of new crop US beans yesterday, and South Korea booking 105,000 MT of US corn. Taiwan bought 60,000 MT of Brazilian corn and is in the market for a similar quantity of US or Brazilian beans. Japan is tendering for 160,000 MT of milling wheat of which 97,000 is US origin and 70,000 MT of feed wheat and 38,000 MT of feed barley. South Korea is looking for 55,000 MT of soybean meal in a tender today and Egypt is also back in the market for 55,000-60,000 MT of EU/US/Ozzie/Canadian/Argie wheat, and 30-60,000 MT of Black Sea wheat. They don't need a boat for the last lot, it's just going to walk there by itself!

China's weekly soybean auction is proving to be about as popular as piles, they managed to find buying interest in 9,600 MT this week, out of offers of around half a million tonnes.

The pound is down close to $1.63 against the dollar and setting a new 2 1/2 month low under 1.14 against the euro in early trade. The cost of all this QE, and the idea that we still may need more weighs.

Wall Street closed at its best levels since last November last night, buoyed by the feeling that Fed chairman Ben Bernanke is the right man to sort the job out. What was the name of that bloke who was in charge when all this shit kicked off, he was rubbish? Oh, erm, Ben Bernanke. The FTSE is also close to 10-month highs, as various bodies reassure us that the worst of the recession is over.

Crude is up a bit, albeit after falling around $3/barrel yesterday, after earlier hitting a ten month high of $75. Stocks data due out at 15.30 BST this afternoon from the US Energy Dept will be the next driver.

Did I say BST, as in British Summer Time? It's certainly a typical British summers day here today, bringing back fond memories of last year's harvest. Might go water skiing in Asda's car park later.