Well it was all about the demise of soybean futures last night. The punters pulled up stumps on S.American flooding and concentrated on the weather map talking of a dry fortnight in Argentina.
The funds took profit, the punters took profit and futures fell. The slide in soybeans exerted pressure across corn and wheat futures. Looking at wheat on the stochastic chart you can see it is now oversold, whether or not it can manage a technical rally against the softer bean market over coming days we will have to wait and see.
The futures traders are a fickle bunch and even though US soybean sales topping 1.6mt last week they remain transfixed on the unknown and decided punting Argentine weather was more practical than watching US soybeans sales climb.
The funds may also us this week’s US export sales data to push markets lower. With Asia on holidays sales are expected to be lower.
Canola appears to be the biggest causality in the short term with both Paris and Winnipeg futures lower. Paris slipped €1.50 / tonne while Canadian canola futures were lower by  C$7.00 on the nearby contract. A move of this much on the ICE would equate to a slide of around AUD$6.50 taking moves in currency into account. Local basis had firmed a little yesterday so to see basis absorb the entire move might be a big ask today.