The Aussie dollar pushed below the 71c resistance level overnight triggering technical selling and a close of 70.29c. Some analyst do not expect to see sustained activity below the 70c mark but further strength in the USD may counter that sentiment. A drop below 70c is expected to produce technical buying as the bargain hunters step in. If the market was to factor in real household inflation into the value of the AUD and the sharp downturn in January retail sales those holding 70c AUD may find it expensive in Feb. I have enough trouble speculating on grain prices these days so I’ll leave AUD speculation to the “experts”.

Weekly US wheat sales were good, 747kt of new business was put on with 71kt of cancellations, equating to 676kt of weekly sales. US weekly sorghum sales were back to 328.5kt against last week’s 477.5kt, still good volume though. Corn had weekly net sales volume of 1.459mt, also healthy. Soybeans out of the states totalled 1.104mt of new sales and 73.9kt of cancellations. Enough to keep a fire under US soybean futures at Chicago, which closed up 8.25c/bu on the nearby.
Strength in the oilseed complex was evident for both Winnipeg ICE canola and Paris rapeseed, the nearby at both exchanges putting on significant value. New crop, Feb 23, contracts for Paris rapeseed closed up just two Euros to AUD$954 / tonne.

Weakness in US wheat futures spilled over into the corn pit at Chicago resulting in a slight drop in corn by the close. Sorghum values out of Argentina are US$3.00 higher week on week, US port prices are back around US$3 to $5, the stronger US dollar is a major factor.