Grain markets in the US and Europe were generally flat to firmer overnight. With the punters now leaning the odds in favour of a US rate rise in December our dollar has enjoyed some much needed weakness. The weaker dollar makes up about 40% of the potential move higher on today’s sheet. Disappointing local jobs figures for Australia also weighed on the AUD. The Aussie was weaker against all the majors by the close.

What ever happened to the saying “bad prices fix bad prices”. The latest report from Strategie Grains in the EU suggest that farmers there will keep soft wheat acres about the same as last year and are expected to sow around 24.3mha. StratGrain increased EU rapeseed area by about 90kha to 6.62mha. Poor sowing conditions in western Europe prevented the increase in area many had suggested would occur there. Snow and rain across the Canadian prairies isn’t hurting our price either.
The best news for Aussie farmers out of the report appears to be the punt that EU farmers will reduce spring durum area by around 7% to 2.7mha. With a world full of poor quality durum at present this may see the Canadian spring plant durum area increase too. Keep this in mind when marketing this year. It may mean that longer term storage of durum may not pay off. This isn’t such an uncommon theme for durum though.