In the US spring wheat was the standout yet again. After fending off spill over selling from a sharply lower soybean market which also saw corn values slip away spring wheat futures managed to gain 7 1/2c/bu on the nearby while HRW futures were roughly flat.

The soybean market is struggling with some good production prospects in the US and poor export demand for US beans. With a large S.American crop hitting the market US values may need to slip further to help recover enough market share in order to get close to the current USDA export projections.  A weak Real will make this difficult enough.
Canola continues to get caught up in the selloff in the bean pit with both ICE and Paris contracts closing lower. As the season continues to unfold and we get a better handle on crops in the Canadian Prairies and Australia it will determine if basis levels continue to climb and we see physical canola break away from beans. In the short term where beans go canola is destined to follow.

Conditions in the Ukraine are mixed according to the locals. Crops in the NW are slipping a little as hot dry conditions limit potential during late grain fill. While crops in the SE are looking very good. Generally Black Sea production should be good in 2017.