Prices 29/7/19


US markets were struggling to find further bullish news leading into the weekend thus took the path of least resistance and sold off with wheat and corn closing marginally lower by the end of the session.
The weaker AUD should counter any losses seen in the US markets. The Aussie dollar is also weaker against the Canadian dollar, to the extent that the move in the CAD/AUD is actually worth more to us than the small move higher in ICE canola futures overnight. Across the Atlantic to the EU and Paris rapeseed futures were a smidge lower. The weaker EU/AUD conversion should go a long way to countering that move though.
The big move in the AUD was against the Indian Rupee with the AUD slipping over 1% overnight to 47.57Rp / AUD. The weakness in the AUD can be somewhat explained away as strength in some of the other majors like the USD and the Sterling. With the US Fed Reserve meeting next week the punters are starting to tip that things are not as bad as some reports are making out, thus there was a little strength in the USD. The pound is basically treading water on technical trade as the whole Brexit debacle unfolds.
I’m still trying to get my head around the Indian sovereign bond sale to work out where that rate is heading. India is trying to attract overseas money by selling bonds aimed at Europe and Japan. There is speculation the US10Bn target will not be raised.

US spring wheat futures continue to show resilience while soft and HRW face steep competition for global sales.