After last night’s rally Chicago corn futures have regained all the losses from the USDA report that sent prices tumbling two weeks ago. Corn also found support from sharply higher soybean prices. Beans were generally higher from good import demand from China and thoughts that the rain in Argentina is hurting quality there. Higher soybean prices may also drag corn acres back to beans in the USA. Wheat futures basically went along for the ride with row crops.

On the export front Japan picked up 127kt of US wheat, it was a mixture of white, hard and spring wheat. Tunisia picked up 100kt of milling wheat and 100kt of feed barley. Prices into Tunisia were very sharp with the barley booked at US$158.77 C&F, that’s equivalent to about $120 ex farm NNSW, so we’ll just forget that price.
Ethiopia are in for another 70kt, their last tender was booked at US$195.10 – US$208.50 C&F.

EU rapeseed stocks are set to reach a 13 year low as global supplies shrink. The USDA are estimating EU production at 22.4mt, well above what most of the trade think will be the final number.  EU estimates are closer to 21.3mt. EU demand is close to 25mt. This should result in the EU looking for imports of 2 – 3mt to fill the gap. Canada may find it difficult given their GM status.