In the US corn futures found support from good weekly US export inspections of 1.34mt which was a little better than the average trade guess. News that a new NAFTA agreement was to be prepared by November after all parties appear to agree in principal also helped corn push higher. Interesting to note cash bids did not follow the futures market dollar for dollar with basis dropping away in many locations.
Soybeans pushed higher on the back of technical buying and weekly US export inspections coming in about where they were expected to. Rain across parts of the US soybean belt also continues to and threatens to delay harvest further. US soybean exports continue to disappoint, the cash market found none of the optimism shared in the futures market and basis levels slipped across most major elevators. There wasn’t much of a mention of the massive sales Brazil and Argentina are making to China in the US wires either.
The EU increased rapeseed production by 500kt to 19.7mt. This still leaves a large hole to fill and EU buyers will be keeping a close eye on both Australian and Canadian production. Aussie crops are not going to yield great after a very tough winter and strong hay prices are seeing a lot of canola being baled. In Canada the crops are looking good, that is if you can see them under the snow or through the rain clouds. All this doubt is pushing EU values higher and saw Paris futures close at E375.00 / tonne on the nearby contract last night.