The Aussie dollar is lower by 1.2% this morning, currently going through at just under 74c. Last night the AUD hit two month lows against most of the majors including the yen and the euro, not bad news for exporters at all. This all came about as a result of the RBA suggesting inflation in Australia is more likely to be around 1% to 2% rather than the 2% – 3% as predicted earlier in the year. This got the punters thinking there is now room for two more rate cuts this year instead of the one cut most were anticipating.

In the USA a sharply higher close in Chicago soybean futures helped corn and wheat to close higher. Fundamentally wheat is probably more bearish than bullish at present so it can use all the help it can get from the outside markets and other grains. The Kansas crop tour data is telling us that things are looking pretty good in the HRW belt.
A few showers for the corn belt may see planting progress slowed a little but there’s still plenty of time to sow the US corn crop in what could only be described as almost ideal conditions.

So over the course of next week we should see support from outside markets help wheat and the weakening dollar will do wonders for canola, chickpeas and cotton in particular. ICE canola rallied strongly on the back of CME beans on Friday.