The big stories overnight were planting delays in the USA and rising canola stocks in Canada.

The planting delays for US summer crops comes at a time when winter wheat is coming into head and flowering. Although the crop is late this year and there is less wheat in head than you would normally see wet weather during this period can trigger many diseases. Head scab is the most prolific killer of quality and yield during wet US springs and early summers. The punters are starting to put money on head scab (vomitoxin) showing up again in 2019.  According to the USDA crop progress report out after the close the rain could be more beneficial than harmful, with winter wheat quality going from 64% Good / Excellent to 66%. Tread carefully on this rally. There was also a week on week surge in spring wheat sowing with around 70% now in the ground vs an 80% average.

In the corn pit the funds have been caught with a record short and the scramble is on for coverage. The cash markets are not as convinced it is the end of the world though and have seen minor moves. Illinois is lagging behind considerably with just 24% of their corn crop sown versus and average for this time of year closer to 89%. East of Illinois only gets worse. With many fields flooded the question being asked now is of what area that has been sown has now failed.
Expect local values to be cautious today but potentially creep a little higher. The AUD is also up a smidge.