Technical Tuesday also found some physical support with trades reported out of the Black Sea region.
Thoughts that the Monday sell off in US grain futures was a little over cooked saw the punters taking profit and pushing the market higher in over night trade. US corn was placed into S.Korea but found it hard to compete with Argentine product.
Wheat found support from technical trade but also from the poor weather outlook in both Australia and Russia. Latest production estimates for Russian wheat this year are coming in around 70mt, some 16mt less than last year. This is still much higher, about 15mt higher, than the 2015 crop which was affected by dry weather.
The US sorghum producer was expecting to see prices move higher after China dropped the anti dumping case. So far we’ve seen offer values out of the US move higher but China has not stepped in to buy the volume the punters were expecting to see. Sorghum was offered at US$199 FOB Texas late last week. This is still some US$20 under what world barley prices are being offered at. The US sorghum offer would equate to roughly AUD$65 under what Australia sorghum could be hypothetically be purchased for at present.
The seven day outlook shows good rainfall across much of the US spring wheat belt and across much of the durum belt in Canada. Canada will also see good falls across the northern canola country. Black Sea winter wheat regions look likely to remain mostly dry.