The Aussie dollar jumped early in the night session and held onto gains through to the end to close at 75.52. The AUD was stronger against all the majors and threatens to counter a slice of last night’s gains in US futures. In the case of ICE canola, which was flat overnight or just C$0.70c higher for the new crop, the stronger AUD could actually result in net losses of around $4 – $5 per tonne locally.
Currency, I’ll admit it, it’s harder to pick than a broken nose. Yesterday ABARE announced the first quarter of 2017 was not as good as expected with GDP growing slower than predicted but it appears growth is growth and after 26 consecutive years of growth Australia has equalled the all time record of 103 consecutive quarters. So this is why our dollar is stronger today, the punters think that result is alright. Well I guess growth is better than a lot of countries are achieving at present. Interest rates are now expected to remain unchanged in the midterm.
US spring wheat corrected a little shedding a couple of cents while soft and hard wheat futures in the US rallied further. Corn was the driver at Chicago last night. Iowa and Nebraska could see 100F this weekend. Short covering followed the weather map prediction.