US wheat, corn and soybean futures closed higher. The AUD is sharply weaker and global wheat offers at an FOB level continue to trade sideways to lower.
In the US, futures were caught up in end of month, long weekend trade. Wheat dragged the corn market higher and soybeans traded higher on some short covering and lower than expected canola production estimates from Canada.
At 19.162mt the Canadian canola crop isn’t small but it’s not as large as last year’s 21.328mt either. This saw a higher close for nearby canola at the ICE and also a little upside in Paris rapeseed futures by the close.
The most surprising data to come out of the Canadian report was the estimated size of the spring wheat crop. At just 28.987mt it took the trade by surprise, they had pegged the crop at 30+mt. Further confirmation the EU wheat crop is not going to break 129mt also pushed Paris milling wheat E4.50 higher. The big winner from the Canadian news was US spring wheat futures.
Trumps talk of slapping another 200Bn worth of tariffs on Chinese imports appeared to be hurting the AUD. It may also have something to do with talk of flat interest rates here and talk of rising interest rates in America.
The US dollar continues to firm with the likely hood of a new NAFTA that includes Canada getting thrashed out next week.