US and European wheat futures closed lower again overnight. The last two session has seen 32c/bu (AUD$16) peeled off December 2018 CBOT soft wheat futures. Technically this is pushing wheat into a very oversold position. The punters are holding more short than long contracts. Harvest in the northern hemisphere is probably the biggest fundamental pressure at present. Politics also continues to play a massive role with most countries influencing values one way or another.
In a Reuters report the Russian agricultural minister was reported as saying he sees no reason why they would introduce an export duty or limit wheat exports at this stage. There was a hint that if prices were to increase dramatically then things may change but there was no hint as to how high prices would need to be to effect a duty. Wheat exports are still pegged at 35mt by Russian officials.
Rainfall across India has increased significantly over the last couple of weeks and will continue to be significant over the next 7 days. This should go a long way to alleviate fears that the area sown to chickpea this year will fall. It now looks like conditions will be fine across both dryland and irrigated regions to sow winter pulses. Chickpeas futures at the NCDEX have slid a little in recent days with overnight losses at about AUD$8.00 / tonne.
Durum values across SW Saskatchewan are steady at C$252 for December. This indicates Newcastle bids are $90 over export parity.