The RBA just can’t take a trick can they. They cut interest rates 0.25%, the AUD/USD drops almost immediately, job done, no not quiet. The Japanese come out and ruin it all. The USD ended the session much weaker against all currencies benchmarked against it. The consensus is that if the RBA had not cut rates yesterday we may well be looking at 77c this morning not 76c.

In the grain markets weaker US soybean futures weighed on all grains. Wheat also struggled when Japan and Korea decided to ban imports of certain grades of US wheat after more GMO wheat was  discovered in a field in Washington state. This isn’t exactly bad news for Australia as that part of America is where the lion’s share of white wheat is grown and this competes directly with Aussie wheat into the Asian markets. Spring wheat futures in the US found support as severe storms impacted on the area.

ICE canola played  catch up and fell sharply finding no support from either US soybean futures or Paris rapeseed which also slipped further. On Monday StrategieGrains cut their French rapeseed forecast by 410kt to 4.7mt, down 12% on last year. Germany and Poland also saw reductions taking the total EU-28 production down 570kt to 20.7mt, 5.5% lower than last year.
Egypt bought just 60kt of wheat in their latest tender after all offers were pushed higher, Russia filled the order.