US grain markets closed flat after shedding a few dollars early in the session. The weaker US dollar helped counter the move lower in values early in the day but may see local merchants here struggle to sustain current bids. The AUD was stronger against the USD but weaker against the Stirling and Euro. Further AUD gains against the Yuan is not helping my BHP shares either.

Overnight the Japanese bought 87kt of wheat which was a mix of US DNS and Canadian and Australian wheat for delivered Sept / Oct. 22.5k of WA ASW1. Another interesting tender is the one from Tunisia for 42kt of durum for shipment in Dec / Jan. We should hear more on this tender early next week.

Russia continues to push through what is shaping up to be their best harvest since 1978. Production estimates for wheat vary from 68mt to 74mt, I’m thinking towards the top end of that range. Selling the product will be the next issues. With EU wheat production back Russian wheat may simply fill that hole and hopefully we will not see a huge expansion in wheat carry over in 2017. The only real issue that Russia will face is from their own side of the fence, or should I say silo. Quality and storage hygiene are expected to be their biggest hurdle in storing this huge wheat crop. I feel blending purchases from Australia and the US will be in order.