Then along comes the currency to spoil the trend. The Aussie dollar found strength from domestic data in overnight trade as the seasonally adjusted trade surplus figures released showed a $3.5bn surplus in December, about $1.5bn better than expected by many punters. You need to look at everything in a positive way these day and the fact that Jodi recently made me commit to a NZ trip later in the year, still something I can’t afford, and the fact the AUD/NZD relationship has changed in my favour can’t be a bad thing.
In the US wheat futures were flat to higher with the harder wheat putting on the best gains. Corn was flat to lower while soybeans were flat to firmer by the close. The stronger AUD will counter around 30% of the potential move higher in local canola values as the AUD/CAD relationship saw the AUD gain around 1.11% against the CAD.
US wheat futures continue to find both technical and fundamental strength as funds roll out off or reverse a 1.5 year bearish stance on US wheat values. Lower wheat sowing in some of the major wheat exporting nations around the world is also spurring a possible fundamental shift in supply after 2 huge wheat years in a row. The increasing value of the Rubble is also putting pressure on Russian offers out of the Black Sea to move higher. Just remember we are a commodity based economy though, where commodities go our dollar follows.