The weakness in the USD index seemed to be a factor in the overall commodity spectrum.

A lack of fresh news overnight noted and muted price action reflected this.

CBOT Wheat was up 1.5c to 423.5c, Kansas wheat down -0.5c to 411.25c, corn up 1c to 327.5c, soybeans down -2c to 1007.25c, Winnipeg canola up $C2.8 to $C465.5, and Matif canola down -2.25€ to 373.5€. The Dow Jones down -84.029 to 18552.02 , Crude Oil down -0.2699c to 46.31c, AUD up to 0.76963c, CAD down to 1.28545c, (AUDCAD 0.98931) and the was EUR up to 1.12804c (AUDEUR 0.6821).

Some analysts calling the German crop smaller and the Russian crop bigger so not much changed here but Russia are starting to voice concern about their storage capabilities. Logistically this will be one to watch as they are already exporting big levels and they have a lot more on the books.

Corn traded both sides of unchanged and Brazil is said to have imported 500,000mt of corn from Argentina and Paraguay. At these volumes you would think US could get approval to export there in their meeting on Sept 1st.

On the theme of Brazil, crushers are noting reduced processing amid domestic shortages and poor profits with Cargill and Dreyfus amongst the companies reducing output. Soybeans traded both sides of unchanged and closed lower. China was here for 119k beans reported in a daily while announcing they will auction off 600k 12/13 beans on Friday.

Malaysian palm oil futures fell from a 10-week high on Tuesday as investors cashed in on the recent strength.

In Australia looks like we will lose some Sorghum acres to Cotton with better margins in the latter. Forecasts suggest there will be an additional 400k/ha of dry land cotton put in this year.

Canola cash prices were up 3-6 yesterday in old and new crop while wheat markets were down 204 for old crop.

Interesting change in milk last night with some pretty aggressive bounces post GDT with WMP up 18.9%, SMP up 3%, AMF up 8.4%, Butter up14.1%, BMP up 18.1% and Cheese up 8.9% on the NZX. The large increases could not come at a better time for Murry Goulbourn.

• Source: Lachstock Consulting