The AUD finished the night stronger against all the major currencies including the Asian markets. The combination of a stronger AUD and a slight drop in ICE canola futures may see local oilseed values tested a little today with the potential downside of roughly $2.50 / tonne on the cards. The recent weakness in Canola basis may allow local merchants to absorb this decline though as we are still back about $15 from basis levels that were there in the first week of October.
With ICE canola futures at a four month high yesterday there was always the risk of some profit taking. Volume at the exchange is high which indicates both speculative and hedge trade has been very active.
Fundamentally the canola market is still finding support from the difficult finish to harvest in Canada.

In the US increased farmer selling capped any potential correction from the previous day’s loses. It’s been a good harvest in the US with plenty of wheat and corn left in bins and ready to hit the market. Corn harvest is running along about on par with the 5 years average of 62%, soybeans are also matching the 5 year average with 76% in the bin. Rain is expected to delay progress for the balance of this week. It was also interesting to see US wheat offered in the latest Egyptian tender but when compared against the values offered out of the Black Sea it is unlikely to get up.