US markets found stability and also a little strength in wheat and soybeans thanks to further positioning ahead of the USDA reports this week and a weaker US dollar after some profit taking.
Some financial analyst are suggesting with the recent events unfolding in Saudi Arabia and China we may well be seeing the beginning of a tightening phase in global economics.
The higher crude oil prices did appear to help soybeans higher as did the news that Iraq had bought 500kt of US wheat outside of the normal tender system last week as opposed to the initial 450kt help wheat higher. Other factors that may influence US wheat futures this week include the five month high of the combined fund money short, now 110,000 contracts (options and futures). This huge level of sold positions leaves the market open to volatility if there is any major adjustments to production reports or a weather scare for any developing wheat crops or even unexpected demand.
Durum in the US is still firm with Canadian durum trading at a delivered basis into N.Dakota at C$305 / tonne. This is for the higher grade durum and does tend to back up values ex farm SW Saskatchewan of around C$275. These numbers in N.America do tend to point towards Aussie values of between AUD$350 – AUD$370 / tonne NTP Newcastle as opposed to current cash bids of around AUD$320.

NCDEX chickpea futures were sharply lower overnight shedding around AUD$40 / tonne. This market is still seeing huge daily swings.