The GFS weather map shows a few showers passing over the US corn belt over the next week. This was the catalyst for a spat of end of week profit taking in US futures markets overnight. Wheat, corn, soybean and canola futures all closed lower. The weather model shows rain tending to be less favourable in the US northern plains so potentially we could see the protein wheat market continue higher next week. Parts of the US in drought were increased in the recent map which you can find at www.droughtmonitor.unl.edu.

The Aussie dollar slipped a little when RBA Deputy Governor Guy Debelle quashed talk of raising local interest rates at meeting in Adelaide late last week. The comments saw the AUD come off a two year high but still find support just under 79c. With rising rates in the US & Canada and the EU sounding likely, the punters were sure that Aussie rates were heading higher too so a large degree of this move higher in the AUD does appear to be speculative buying.

International demand see’s Jordan reopening a tender for 100kt wheat that they didn’t buy last week. Iraq is looking for 50kt of wheat from the US, Canada or Australia and Bangladesh issued a new tender for 50kt of wheat.