The technical side of the US futures market ruled the night yet again as many punters continued to clear short positions in the wheat pits. All three US wheat contracts closed higher dragging corn along for the ride. Soybeans were also firmer as S.American weather has the punters double guessing every piece of data that comes out. A return of the Chinese into the market also resulted in renewed export business for many locations. ICE and Paris canola values closed higher on the nearby contracts.

Canada is expecting to see a significant increase in canola acres in 2017 up to 21mt are expected to be sown, an increase of 630kac over last year. Canada is also expected to be increases the area sown to spring wheat, up around 700kac over last year. The big mover downwards appears to be durum at this stage, from 6.19mac last year to 5.26mac this year with some even believing as little as 4.5mac will be sown. The fusarium problem is also expected to result in a big drop in durum acres across the Northern US states.

Conditions across the far southern wheat districts of Ukraine and Russia are expected to result in some winter kill this weekend. It may take a month or more to determine exactly what level of kill though so don’t expect it to have much impact on prices at present.