Recent sharp gains in United States grain futures have made markets vulnerable for a correction. And that's what happened last week.

US wheat, corn, and soybean futures tumbled last week, culminating in a massive sell-off on Friday. Soybean futures, which had seen some of the sharpest increases, suffered the largest daily price fall in six-and-a-half years on Friday. Benchmark US wheat futures tumbled 4 per cent on Friday and finished the week 5-6pc lower.

The sell-off was not completely surprising with global wheat values surging by around a fifth in the past six weeks, leaving investors anxious to bank profits.

A significant part in the run-up in world wheat prices was the market factoring in Russia's massive 50-euro export tax, which is due to start at the beginning of March.

Leaving aside the day-to-day volatility and noise of global grain derivative markets, little else has altered.

Russia's wheat export tax will further curtail its wheat exports in the coming months pushing more demand to other countries. Australian wheat and barley exporters are well positioned to capitalise on any shortfall in Black Sea wheat and barley exports after a massive 2020 winter grain harvest.

Australian grain is competitively priced against overseas markets to shift the big crop. Exporters are saying demand remains robust.

Exporters are reporting strong demand from traditional buyers across South East Asia and the Middle East as well as parts of Africa. They are also reporting strong sales to less traditional destinations as importers look to Australia to make up for shortfalls from the Black Sea as well as other countries.

Scattered storms across southern Queensland in the past week have delivered beneficial rain for summer crops as well as building soil moisture reserves for the 2021 winter crops. Rainfall totals were patchy, ranging from 20mm to 40mm with isolated areas receiving as much as 60mm.

Dalby received 40mm with upwards of 50mm around Surat and Goondiwindi. The rain will benefit late planted sorghum crops.

Local grain prices remain firm, but without the fireworks seen in overseas markets. Sorghum into the Darling Downs was firm at $310 with a scarcity of farmer selling. Stockfeed wheat into the Downs is demanding $310-315 a tonne with barley fetching $275.

Grain prices were also firmer in Victoria, South Australia, and Western Australia on exporter short covering.