Daily Market Comment (02/09/2010)  

Chicago Wheat for December 2010 is up 23 cents to 708 ¾ US cents per bushel.

US wheat futures finished sharply higher overnight on the prospect that demand will stay strong as exporters made significant export parcels to Egypt and Germany.

The 225,000mt sale to Egypt reflects the increased competiveness of US supplies, and indicates that the US should be able to capture a significant market share before supplies arrive from the southern hemisphere. With Germany purchasing 20,000mt of US milling wheat it adds strength to the rumours that they will need 1mmt this year due to quality issues they have suffered as a result of the wet harvest period.

Weekly wheat export sales are due out tomorrow with estimates ranging from 600,000 – 1mmt.

Chicago Corn for December 2010 is up 7 ½ cents to 446 ¾ US cents per bushel.

Corn futures finished higher overnight on support from other markets and reports that the USDA will decrease its yield forecast next week.  

Winnipeg canola for November 2010 is up $2.80 today to $464.80 Canadian per tonne.

Canola finished higher overnight despite the stronger CAD as there was increased buying interest from crushers and Japan.  

The Australian Dollar is currently trading at $US0.9112.

The AUD opened significantly higher this morning on positive economic data from the US, China and Australia. Data out of the US showed manufacturing expanding again for the month of August, lifting hopes of US economic revival. US payroll figures are due out on Friday, with expectations that unemployment rate will increase by 0.1% to 9.6%.