The AUD was mixed against the majors but generally traded lower. It was sharply lower against the greenback following a speech from Glen Stevens yesterday which lead many punters to come to the conclusion we may be seeing another interest rate cut in the mid term. The next level of resistance for the AUD is pencilled in at 71.70 just below where the market has opened this morning. A breach of this support level will have the speculators suggesting we may see it slip back to 68.5, a low set in September last year.

Grains and soybean futures in the US traded mostly lower overnight. The punters are projecting around 3 million acres of corn will be pulled out of corn and sown to soybeans. Wheat continues to find it hard to rally as world wheat crops get bigger.
On Monday the MARS crop monitoring service in Europe said they expect to see EU-28 yields exceed the five year average. Not all regions are in perfect shape after an unseasonal hot start to April before cold conditions returned but there is little damage to talk about at present in both the EU and the FSU states.

Chickpeas continued higher at the NCDEX in Delhi. The higher close and weaker AUD could see as much as $15 on top of yesterday’s bids for local new crop chickpeas today.