Monday started with CBOT markets showing some sign of recovery, possibly even strength, on a slightly lower US$ and hope that the US will not drop, lemming like, off the much discussed fiscal cliff at the end of the year. Equity markets around the world have found comfort in the news and posted gains throughout the day which has added to positive tone. At the same time, energy markets found renewed strength on the increased tension in the middle east, Palestine and Israel, and this has spilled over into agri markets.

Funds are reported to have been buyers today  as have consumers which has helped push markets higher into the later stages of the session. Cash basis has continued to stay strong in the US grains as farmer selling is limited and consumers as well as exporters remain buyers.

EU grain markets took comfort from the US gains and rallied in sympathy making gains on the day. The parched US Plains continue to receive little in the way of rain and the outlook for the winter wheat crop does not improve right now. Similarly, the Russian wheat growing regions remain dry with little in the way of rain in the forecast. In contrast UK and northern European wheat growing regions are suffering from too much moisture and consequent delays; it seems that global wheat prospects for the 2013 harvest are on the back foot right from the outset.