The front months of the futures market overnight jostled for position as we close in on first notice day in the grain space, whilst the new crop contract all took a clear direction, moving lower. Ethanol production remains support positive, along with the expectation of a lower final corn plant, while improved production in Europe, and South America give the bears something to crow about. Soybeans ran a similar course, new crop declined on expectations of additional acres heading to soy after missing the corn planting window, and sales of 12/13 crop being cancelled or rolled into the 13/14 marketing year. Wheat followed its two Chicago counterparts, the Monsanto/GMO wheat situation continues to be heavily focused on, whilst a number of analysts have turned their attention to working out production ahead of the USDA report out next week.

 Cotton gave back a portion of the 500pt rally of the last 2 sessions, closing 105 pts lower for the July contract. Carry in the market has slipped back to around 120pts, from the nearly 300pts of late last week. Open interest remains high, given the limited number of days prior to first notice day. Talk of a squeeze, along with a merchant maybe readying to take all the cert bales off the board, leaving the door open for some volatile market moves over the next couple of sessions. Ecom today is bidding $470 for 13 crop, $475 for 14 crop. We are happy too work market orders for both your remaining 13 crop bales and forward sales of 14 crop for clients.

 The Aussie dollar came under more pressure overnight and early this morning, with reasonable data coming out of Europe, lifting both the Euro and British Pound, while US equity markets have come under pressure as the greenback strengthens. A new 12 month low was made this morning, at 0.9468

 Domestically, the wheat market is leaving no stone unturned as prices continue to rally as merchants continue to fill open positions in the feed markets, where wheat under APH is being flat priced to fulfil requirements. Sorghum is in demand for prompt delivery, both ex-farm and in the system, our homes for high moisture are filling up, call us with your spec’s and we will try and find you a home. The old crop pulse market has headed into the doldrums, with word that the middle east and subcontinent are awash with pulse grains. New crop wheat prices have stayed firm, even after the rain event of last weekend which will surely help those able to plant a crop for this season.