It’s going to get hot for a couple of days from about Kansas south but further north across Nebraska and Iowa, the corn belt, temperatures are not expected to get much hotter than the mid 30’s before cooling off again on Sunday. The US forecast also has a few showers across the corn belt during the hottest part of the next few days so evenings will cool off nicely. The stronger US dollar also hurt US grain futures but making the AUD weaker will help counter some of the move lower.
US soybean futures were smashed, again on the back of a longer term weather map predicting ideal pod fill weather in August. ICE canola futures got caught up in the sell off and closed sharply lower, down C$7.30/tonne. At Paris the rapeseed contract although closing lower did not succumb to the level of selling ICE canola did and closed €1.50 / tonne lower in the Feb17 contract.
Reports suggesting that palm oil production maybe on the increase also weighed on the oilseed market.
Wheat was simply a follower of corn and soybeans in the US. The same bearish fundamentals remain unchanged for wheat and appear likely to stay that way for some time to come.
Canadian canola production was increased overnight with the government projection up 500kt to 15.9mt. This estimate is still well below where other punters expect to see the final number, some say by up to 1mt. Even with Canadian increases world canola stocks are still predicted lower. Not so for durum, larger crops in Italy, Canada and France are all expected to weigh on prices.