There was a little bit of late squaring up in the US futures market after Monday night’s unexpected rally. All grader of US wheat futures for Dec18 closed lower as did both corn and soybean futures at Chicago. The weakness in US futures rolled around the globe with ICE canola and Paris rapeseed falling along with Paris milling wheat.

Cash markets around the world were mixed, Black Sea ports were generally a little higher for both large and small vessels, Aussie values were relatively unchanged on the offer side while US cash values were in line with futures and slipped a little.
Argentine wheat futures were flat. While on Argentina it should be mentioned that the brilliant start to their season has not continued and some parts of the wheat belt are now becoming a little dry.
There is speculation that Argentina will soon join the long list of major exporters reducing wheat yield estimates. A quick look at the 30 day rainfall chart for Argentina indicates that although a little dry the major production areas have seen around 20mm – 30mm in the last 30days, Combine this rainfall with a full profile and one could assume that it will need to be drier for longer to cause any real concern.

Algeria is in for 50kt of wheat, they usually pick up more than their tender volume though. Usually supply will come from France or Argentina. With France having a few issues of their own it will be interesting to see what values this business is done at.