Soybeans were the star performer last night after a number of recent US sales continue to support the market. Old crop carry over is going to be lower than expected according to the USDA and soybean oil is also getting a little tight. The US is still expecting to see a very large domestic soybean crop in 2016 so it will be interesting to see if this sentiment continues on after the headers get into the fields.
The higher soybean values rolled over into ICE canola futures which managed to close C$7.10 higher on the nearby. The AUD/CAD saw the Aussie strengthen so although we do expect to see firmer local prices today we may not see the rally dollar for dollar. Local canola basis was back about $6 from the high yesterday but with Paris rapeseed up €6.25 / tonne on the nearby contract last night we are likely to see basis continue to remain firm on the back of demand from Europe.

US wheat futures were mixed, winter wheat was generally softer while spring wheat did manage to close in the black. It’s also supportive to see Brazil on the sales sheet for the USA. The only real fundamental strength in the wheat market continues to be the constant downgrading of the EU crop. This unfortunately to date has been countered by improvements in other major exporters.