Technical selling was a feature of the US futures markets last night. Profit taking pushed wheat, corn and soybeans futures lower but nothing was really hit for six. Minneapolis wheat was the worst of the wheats shedding 7.25c/bu (AUD$3.50) by the close.
Fundamental news in the corn pit was mixed with good EU demand and poor production estimates for the second crop in Brazil underpinning prices.
China is the likely counterparty concerned with large cancellations of export soybeans from the US. Both old and new crop sales were pulled but this didn’t appear to have an impact on either Paris rapeseed or ICE canola futures which both closed higher on the night. The high close puts weekly gains for Paris at about AUD$11 / tonne.
After wheat set multi month highs it succumb to profit taking and closed a few cents lower. Productions issues around the world and in the USA continue to restrict the amount of downside in the wheat market at present.
The IGC tend to be thinking the same as most analyst now with world wheat ending stocks projected to come in at a four year low after the 2018-19 crop comes off. All world grain ending stocks for all grains is expected to fall around 10%. If China continue to auction old crop corn off expect that level to increase.
Algeria picked up a large 690kt of wheat, mainly from France. The average price was confirmed at just under US$228 / tonne CFR.