US grain futures were firmer overnight, except the CME Aussie FOB wheat contract that was US$7.75 lower for the March slot. Obviously there is a bit of a liquidity issue with the contract. With open interest of just 720 contract, 100 less than a couple of days ago. It is apparent that trying to clear a position will result in the one trying to clear feeling a little pain.
All three US wheat grades managed to close in the black. If you roll those moves through to Aussie dollar values taking a sharp drop in the Aussie dollar into account we could potentially see some of the last couple of days losses factored back into Aussie values.
US analyst say the rally in wheat, and corn and soybeans, had a lot to do with technical trade after a few lower closes but also found momentum on “good progress” in trade talks between China and the USA (que the broken record and eye roll).

The IGC trimmed global production of wheat from 737mt to 735mt. The IGC data is generic looking at best, basically following USDA data which followed China’s lead when they recently increased stocks in corn in particular. No wonder the trade talks are going so well. Is it just me or does anyone else think China must be getting close to ordering some import corn.

We should probably be looking more at the value of the AUD this morning than the US grain futures. The market struggled for direction and ended up concentrating on the slowing global economy. China’s slowdown and Brexit being major negative factors last night.