Nearby US wheat at Chicago was hit pretty hard overnight with soft and hard red wheat futures falling away. SRW was the biggest loser shedding 18.5c/bu (AUD$10 / tonne) on the September contract. Volume for September is low as most punters have now rolled out of Sept and into December for their “hedging” activity.
Talk of some weather damage in the US spring wheat crop may have been what triggered the fall in wheat values. The last thing a low protein HRW grower needs to hear is more wheat competing against corn for a feed grain home.
US wheat did also need to shed around US$20 to be more competitive on the world stage. This week has seen SRW shed 24c/bu and HRW about 13c, not exactly the $20 they needed but a start.
Western Australian wheat values were already able to compete with most origins into the Asian markets so the knock on effect should be minimal on Monday but it’s unlike the trade to miss an opportunity to talk a market down.
Much of Europe has remained dry this week with lighter falls across the far western parts and across eastern Ukraine. Spain and Italy have also seen some light falls. India has seen good rainfall across the bulk of the continent with 8″ – 10″ recorded in some locations east of Indore. India would be in the process of harvesting what we would call summer pulses, cotton, and rice at present. The forecast is for further heavy monsoonal falls in the week ahead.