In the US futures values for corn and soybeans were both lower on the back of some much needed dry weather being predicted for parts of the south central and western corn belt. Kansas and Nebraska should also see some drier weather allowing wheat harvest to move along. The weather map looks ideal unless you live in Wisconsin, it’s expected to see another 2.5″to 5″ of rain over the next 7 days.
Parts of Montana that have been dry and into the NW of N.Dakota should see 1″ to 2″, giving the durum belt a nice drink. Further north into Saskatchewan rainfall is also predicted hence the weakness in the ICE canola contract again today.
In the US growers have been taking the rally in wheat as a pricing opportunity. Domestic values in the USA have once again rallied well above international values on the back of local concerns.
Over in Europe the north of France, Germany and the western districts of Poland show little to know rain in the 7 day forecast. Heat may return to France again on the 29th with temperatures some 2C to 4C hotter than normal for this time of year. The trade do not appear overly concerned with the weather at present but December milling wheat futures at Paris closed at E187.25 / tonne, just E5.00 under the recent high set in late May.
Russia continues to see each end of the rainfall spectrum with wet weather in the west and dry weather persisting in the east. Hot dry weather across the Volga Valley and into Kazakhstan is still a concern but most punters insist Russia will produce 81mt of wheat !!! ??.