The Aussie dollar was smashed in overnight trade after the RBA cut official rates 25 points to 1.75%. About half the punters were predicting the 25 point cut so that left half holding a position they didn’t really want to be holding. The fall in the value of the Aussie dollar was against all the major currencies not just the US dollar.

In the US the wheat crop tour of Kansas is underway and yield estimates are coming in much better than many had expected. Reports south of Kansas into Oklahoma are also very good considering the dry start to spring with many producers expecting to see average yields after the good rain of a couple of weeks ago.

The fall in the value of the Aussie dollar will go a long way to countering the losses in US futures but the losses there were significant and we may still see some falls in the vicinity of $5.00 in cereals today.

Chickpea futures in Delhi were mixed and traded a range of roughly $25 / tonne throughout the session. The higher close and the weaker dollar could see increases of around $27 per tonne in local prices today.