Market Recap 17.12.09
The markets traded lower pretty much all session, that is, until the last few minutes where the bulls came out to play, pushing the market to a miniscule gain day on day. The US fed, after the close, came out with language that was interpreted as positive and, as a result, the USD has rallied, which is what we need to happen if we are to see a stonger AUD price for our grain. Given that the Aussie is still hovering around 90, it is historically a strong rate, but at least the language and reports from Australia and the US are starting to sound more friendly. Egypt came in on their tender for 120K and bought a whopping 300K of Russian and 60K of French. The CNF values are around our FOB values, so don't expect Aussie to actually work into Egypt for some time. Russia is indicating that they might increase their production numbers for this year while Ukraine have less grain on hand now than they did at this time last year. No surprise really, given the size of last year's crop and the frantic pace of Ukrainian exports. All in all, seems like a good day to kick back and watch the cricket...
Date of Publication: 17 Dec 09 8:50am ACST
Source: ABB Grain
