The strength in the Aussie dollar isn’t helping the equation this morning. Overnight strength in metals and a weaker USD has seen the AUD climb by up to 1.5% against most of the majors. In dollars per tonne terms it equates to roughly -$2.73 in wheat and around -$1.15 / tonne in canola. The punters had expected to see higher inflation in the US this year but that is looking less likely.

US grain futures were mixed overnight with corn a smidge lower, soybeans a smidge higher while soft and hard wheat futures at Chicago were once again sharply lower. Spring wheat futures at Minneapolis managed to claw back a slice of the recent decline to settle around 14.25c/bu (AUD$6.63) higher in the December contract. Soybeans found support from news a Chinese trade delegation had signed up for US beans in a recent visit.

Soft and hard wheat futures were lower on the back of news that Egypt had once again filled their latest tender with Black Sea wheat. The lowest offer was out of Russia at US$192.29 FOB by ADM. Prices ranged from US$192.29 to US$202.90 / tonne. Lower freight rates from the Black Sea continue to keep Russian and Ukraine wheat as the most competitive. Egypt confirmed the purchase of 355kt of the 1.1mt offered for sale.