In US dollar terms many grains at the international level were higher overnight but a sharp rally in the AUD against a number of the majors and the USD could turn potential positives into negatives. Chicago SRWW futures were flat to firmer, closing about AUD$0.86 per tonne higher. The rally in the AUD against the USD equates to a fall of roughly AUD$8.58. A similar situation in the ICE canola market at Winnipeg, a potential gain in futures values of AUD$4.82 in the January slot is countered and a move of negative AUD$6.90 in the AUD/CAD exchange rate.
The AUD fell to 61.25 early, attracting bargain hunters and triggering a technical rally that didn’t lose steam throughout the session. There appears to be little fundamental strength to the rally at this stage. Inflation fears are still one of the major concerns globally. The US continue to shovel billions of US dollars into Ukraine washing machine. Throw some inflation into the equation and Ukraine may find themselves with some expensive debt if they actually win that war.

Turkey picked up 495kt of mostly Russian 12% milling wheat at what most punters believe to be US$337 C&F. Tender offers ranged from US$349.00 to US$326.80.  This appears cheap considering the recent increases in Russian export tax on wheat. It may not look so cheap in December though. Some reports continue to indicate that Putin has no interest in extending the export corridor deal past the Nov 22nd expiry. This is in contrast to the Turkish President Erdogan’s thoughts; he believes the corridor will remain open allowing Ukraine grains to move freely out of Odesa through the Black Sea. I guess what else would he say with an open tender for 495kt of wheat on the books.
Thailand was said to have picked up 60kt of Aussie feed wheat in their latest tender. Can’t see filling that being much of an issue at present.