According to the wires the discovery of swine flu in a wild boar in east Germany may lead to increased demand for US pork, thus higher feed usage as hog stocks increase to fill the additional import demand. Futures markets are fuelled by speculation are they not.
Cash bids for export corn were higher but not dollar for dollar with futures. PNW bids saw basis drop away while Midwest corn basis was better on the back of higher ethanol production.
The USDA WASDE report is due out tonight. Most punters a tipping a lower US corn number, maybe a higher US wheat number and potentially a lower soybean number in the US. The trade there are tipping a yield reduction in corn from 4.617t/ac to about 4.529t/ac, I still tend to think this lower yield is optimistic.
The USDA announced another good soybean sale to the Chinese, this helped limit losses in Chicago beans and helped ICE canola futures higher. The onset of cold weather and a bit of snow is also concerning some producers on the Canadian prairies. The trend higher in ICE canola futures over the last few weeks has eroded some of the basis Australian values have shown. ICE futures have rallied C$26.60 since mid-August while Australian values have remained unchanged. This has seen basis fall roughly AUD$17 locally (stronger AUD).
There’s a bit of money flowing from shares to grain futures in the USA too.
Basically today will be all about the USDA report tonight, don’t expect too many big moves locally until that data is out in the open.