The weaker US dollar stimulated some buying interest in US ag futures overnight. There was also fundamental support generated by wild weather across parts of the US plains and Midwest over the weekend. Although isolated the potential for damage to fields and infrastructure is being calculated and compounded with the risk of winter kill for some. Further support for US wheat was found in the export inspection number. At 492kt it was above all trade estimates prior to the report being released. Asian markets still remain big buyers of US wheat.
Cash bids out of the US Pacific Northwest were higher. The strength in the AUD countering the plausible move higher when converting that value to a delivered Asian consumer and back to a comparable Aussie port price, but values were higher all the same. US HRWW, both futures and cash, were the clear winner in the wheat grades. PNW values up roughly AUD$7.13 / tonne for HRW when compared to the above conversion on Friday. Spring wheat, both Canadian and US, closed AUD$2.00 to AUD$4.00 firmer, but white wheat values out of the PNW were less volatile, price moves unable to counter the negativity bought about by the stronger AUD. Resulting a net loss of AUD$1.55/t in the conversion comparison for white wheat.
Both Black Sea and French values showed much less volatility than the US wheats. The stronger AUD countering values for EU and BS and seeing wheat slip by a dollar or two. Argie wheat tracked US values more closely, the conversion there up a few dollars.
Winnipeg canola finally bounced after being crushed on the back of Chinese tariffs. Not sure how much of an impact that will have on local values here today with the French rapeseed market back roughly AUD$9.51 / tonne compared to yesterdays conversion. Should also mention that palm oil was smashed last night, the May 25 slot shedding 110, roughly equivalent to -AUD$38.77/t. Chicago soybeans were also a smidge lower nearby. It all kind of points to the jump in Winnipeg canola potentially being a dead cat bounce.
Delhi chickpeas were hit pretty hard, a trading range of 5295Rs/Q to 5567Rs/Q, last price of 5431Rs, a conversion loss of AUD$37.12/t compared to Friday.