US soybean futures lent support to corn in overnight trade. The same weather fundamentals in the USA currently apply to both row crops. Wet, cold weather in the forecast and over the last week have most analyst expecting a slow start to the sowing season for both corn and beans.
Reports of snow across the NE USA and temperatures that were close to or still below freezing across much of the Mid-West earlier in the week saw little to no field work completed. Overnight temperatures in Hays Kansas were down to 7C, the warmest morning since Tuesday last week and well above last Thursday’s -7C. Temperatures should generally trend higher from here on but the forecast does show a dip back to 1C in parts of Kansas on Sunday.
The western half of Kansas is probably at the greatest risk of frost damage. Conditions there have generally been drier than average, potentially pushing crops to head quicker. Keep an eye on the USDA weekly crop progress report next week.

The Aussie dollar rallied sharply against the US dollar in overnight trade. The move in currency alone worth almost as much as the move in soft red winter wheat futures. The two moves combined equating to a potential drop in AUD terms of over AUD$10 today.
The strength is linked to commodity values, something that continues to push higher. This may be the case in the short term but longer term most analyst expect to see demand based tempering of commodity values. In other words high prices will slow the demand side of the market.
The potential volatility has muddied the water significantly, with most punters now predicted a wider than ideal trading range for the AUD in the short to mid-term. Some predict that as the demand for commodities is reduced the AUD could see 70c. Resistance will continue to be around 75c, as it has been for some time now. It’s not unusual for the AUD to see a 10c trading range in a 12 month period though.