Futures in the USA clawed back much of the previous sessions losses overnight. The key to wheat at least may at last lay with the Russians (like we didn’t know that). Markets reacted to rumours that Russian officials had asked exporters to slow the export pace during the second half of the marketing year.
It is said that Russia is hoping to reduce second half exports to about 12mt, about half as much as they have already done this year. This would still result in exports of around 35.8mt. Currently the USDA have Russia pencilled in at 36.5mt, so it’s not a massive hit but it is probably worth watching to see if they are just talking their book or are actually trying to reduce food price inflation domestically.
The next big question is will we see a WASDE report out of the USDA in January that reflects a reduced Russian export number.

The durum market should take the failure of either the US or EU to offer durum wheat for sale to Morocco in their latest tender as positive to market values. Is this stating simply that the EU and USA don’t have the volume to export. Morocco was looking for 336kt after all. Or does it say that the price they expect the business to be done at is just too low. Either way I can just about hear the Canadian guys rummaging around looking for a phone directory to Morocco.

The AUD did counter moves higher in ICE canola. The Aussie dollar was dragged up on a better Yuan in overnight trade.