There was some downside in US futures in overnight trade.
Technically corn was overbought and looking for somewhere to go. With a better weather map out for the States for next week the punters showed little hesitation in taking some profit.
Wheat has been dragged higher by corn and beans for the last week so quickly succumb to selling. Wheat itself has exhibited nothing more than continued bearish fundamentals apart from some weather damage prospects in France. In the scheme of things increases in production in Russia, Argentina and Australia should make the slight reduction in EU wheat production irrelevant. Increased demand out of India will help swallow up some of the Russian crop too so the market continues to look range bound going forward.
Technical trade in US wheat futures may see the nearby month soften but outer months garner support as punters roll their positions in wheat prior to first notice day in the July contract, but I have my doubts this a game changer. Yield reports in Oklahoma and Southern Kansas are coming in better than expected. US wheat exports are poor. Luckily corn and soybean sales were decent.
Brazil has walked away from US corn imports in favour of chewing through local wheat stocks. This was fine while they had feed wheat to chew through but the feed market there is now into milling quality wheat. This may become supportive in the longer term.