Poland and Germany look likely to be the next victims of the wet weather in Europe.
With the French wheat harvest well under way estimates for production continue to fall. Last night did see Paris milling wheat futures close lower but only after a 9% increase over the last few sessions.
Reports on Monday were suggesting that Germany and Poland, which are only just starting their wheat harvest, may also be suffering downgrading and disease from the persistent wet summer. Southern Germany appears the worst affected, grain from this region is generally for domestic consumption with export grain usually moving from northern Germany. At this stage the northern crop is still a little while off harvest and also did not see as much rain as the southern crop.
Basis levels in Germany had risen to around one euro under futures on the offer side while buyers were still trying to extract grain in the south for €2.50 under.
US soybean futures were hit hard again as the punters come to terms that the weather has been, is and continues to look good. The next few weeks are predicted to be almost ideal. Soybeans slipped below US$10/bu, a level many analyst expected to see support begin to creep back in at. As a result of the lower bean market ICE canola was once again hit hard, down C$7.60 / tonne on the nearby contract.