Improving commodity prices and a weaker US dollar saw the Aussie dollar touch on 75c in overnight trade. The AUD gained against the Canadian dollar too which will counter a large portion of the upside in ICE canola futures last night. The AUD was fairly flat against the Euro though and there was some upside in Paris rapeseed futures so generally the outlook for local canola values today is good and we should see a slice of yesterday’s losses taken back.

It was all about Chicago soybean futures at the end of the night. The weaker USD had the Chinese in for more business. The problems experienced in Argentina are really helping the US bean market now. The nearby soybean contract at Chicago set the highest close for a nearby contract since August 2014. Technically beans also have more potential upside. Just remember newtons law though, it applies just as truly to grain markets as it does gravity.

Supporting the wheat market was spill over buying from the bean pit but fundamentally we also see support from a wet forecast for France and much of Europe. Most of France is expected to see another 25-50 mills over the next week. There is also the chance of some heavier falls to the east and south of France. Let the weather market rule for another month or so it seems.