US futures markets drifted lower in overnight trade. Corn and beans were softer on the back of lower than expected weekly export numbers while wheat was mixed, Chicago and hard red wheat futures slipped while Minneapolis spring wheat futures, the wheat most similar to our Prime Hard, managed to close higher. Weekly US exports for wheat came in bang on expectations so the bearish pressure came from reports of big yields in Australia and outside pressure from beans and corn.

MGEX spring wheat futures are at 541c/bu on the nearby contract, AUD$268 / tonne compared to SRW futures at Chicago of 371c/bu or about AUD$184 / tonne, that’s an $84 premium. The spread between port ASW and APH2 bids here is about $70, so there is potentially more fat in the spread yet. I’m not game to make a prediction after yesterdays canola attempt though, there appears to be a lot of canola basis staying in the traders pockets at present.

The interesting one is actually canola and rapeseed. The decision by OPEC to cut production sent crude up over $50. This in turn pushed Paris rapeseed higher over the last couple of sessions. Nearby Paris closed at €411 (AUD$590/t) while ICE futures at Winnipeg were up C$2.50 to C$520 / tonne. Aussie values pushed lower yesterday closing at AUD$528 / tonne.