Offer values for wheat around the world slipped away yesterday. Black Sea offers were up to US$6.00 lower while US offers were up to US$9.00 lower. Offers for APW FOB Western Australia were down US$1.75 to US$275. This would still see wheat coming around to eastern Australia unloaded and freighted to inland feed mills being worth around AUD$465 – AUD$470 / tonne up country.

The US dollar moved higher as emerging markets got sucked into the void being created by the collapsing Turkish Lira. The US continues to be viewed as a safe haven while the AUD is getting tugged between the two. Being heavily influenced by Chinese growth the AUD stumbled before trying to recover late.
Excessive spending on government funded projects left Turkey looking for more money from outside their economy. Turkey offered little in return and inflowing capital has dried up. Since the coup attempt authoritarianism has increased and scared away some investors. Countries that were happy to loan money are no longer there and the prospect of a loan default is increasing.
There is some concern that major lenders such as France, Italy, Spain (US80.9Bn) and Germany may eventually get drawn into the crisis. Talk that the Turkish Central Bank will allow banks to cut reserves of foreign currency further may signal they expected to lend their way out of the problem. The USA doubled tariffs on Turkish steel last week.
Currency may well play a larger role in grain prices this week than actual grain markets.