As the US row crop harvest heads into its final acres, supply has continued to remained plentiful, keeping the pressure on prices. All the grains markets have continued in a somewhat downward trend, even with the tight trading ranges we have been seeing of recent times. Soybeans made it lowest close in over a fortnight, with weather outlook in South America continue to bode well for their crop pressuring the crop more than could be counteracted by the continued frenetic export pace. US wheat is starting to become more enticing into export markets, with EU wheat starting to run tight, prices in Europe, particularly France have started to jump up. The Black Sea region still has the cheapest grain on offer, but the US is now closing in on those prices. Corn has continued to make ground with its export program, but interestingly corn from the Black Sea made its way into a South Korean tender which was expected to be dominated by US sales.

The cotton market seems to be sitting on eggshells with rumours in the marketplace that the Chinese reserve might again look to run another round of auctions. Even with prices much more expensive than the open market, the ability to ship supplies quicker than international merchants, if the reserve does in fact run a round of auctions, demand for cotton, particularly that of the US will drop off significantly.

The Aussie dollar lost ground yesterday, with a statement from the RBA leaving the door open to a cut in interest rates next month, and a reiteration of the preference for lower exchange rates to continue to support our export economy, whilst the US economy focuses on the continuing tapering discussion, and when  it will or wont happen.

The local market has been sitting reasonable unchanged from last week, information on the southern harvest has been limited, and a number of buyers and sellers alike are looking to this information to direct their marketing decisions. We have seen some interest in the durum market on both a deferred pick-up ex-farm, and delivered into the bulk handling system, and are keen to see offers from anyone looking to price a parcel of durum. Demand for high protein has extended from delivered packer, into the delivered Gunnedah and Newcastle destinations for the December onwards program. Pulses are continuing to hold onto their recent gains, but most growers are preferring to look to market their chickpeas into the new year, or at a number $400 or better. We have had some interest in barley, both prompt and deferred. The new crop sorghum market has continued to strength, but rainfall has been reasonably sporadic and sellers have been few and far between.