According to some analyst the strength in the Aussie dollar is likely to be short lived once the Yanks sober up and get back to work. The AUD is stronger against all the major currencies this morning. This will not help ag prices here one little bit. There’s still the Brexit result hanging over world financial markets but as an outsider one can’t help but think the whole thing was blown out of proportion a bit and 2 years to sort it out will surely lead to some very good deals for the UK and the EU. The big news in the local financial markets today will be from the RBA meeting this afternoon. Most punters expected to see rates left unchanged at 1.75%.

Around the world we see harvest pressure countering any impact wet weather might be having, well at least in the short term. Heavy rain and reoccurring showers across much of France and some parts of the Black Sea has many buyers nervous about quality this year. With the wet weather in mind it was interesting to see Egypt finally address the level of ergot for imported wheat. The level had been set at an unrealistic 0% for some time and had resulted in fewer sellers willing to offer up wheat to Egypt or offering at a premium. The level is now officially set at 0.05%. This could be very timely for Egypt given the weather concerns in most of their major trade partners. News of the ergot limit and the continued wet weather in France saw Paris milling wheat close 1.1% higher overnight.