US wheat futures were hit pretty hard in last nights session. A combination of long weekend catch-up, good weather and poor export demand pushed prices lower.
After the close the USDA weekly crop progress report also showed good progress in corn planting while winter wheat crop condition also improved. Spring wheat sowing in the US also jumped to 88% in, that’s 22% better than the five year average for this time of year. Spring wheat condition also improved 3% in the G/E field.
I hope everyone enjoyed that little rally, we may need to wait until the middle of the US summer to see another, they usually try to kill the corn crop with a heatwave at some stage of the game.

Technically the corn chart wasn’t wounded too badly but a lower close tonight could signal a breach of resistance and we may see a short term down trend develop. The fact this move in futures combines with a slight improvement in the value of the Aussie dollar may see local bids decrease today, particularly for new crop grains and sorghum.
The fact that US HRW is only US$16 more expensive than corn could put pressure on corn values though but should signal that wheat is indeed cheap enough to buy local demand in the states.