US grain futures closed the session higher, a little off the highs of the day but firmer all round is a good start. The suggested changes to the Renewable Fuel Standards in the US may see ethanol blends go from a minimum of 10% to 15% and there is also talk of changing the point of obligation from refiners to position holders. It appears the trade of in point of obligation is the increase in E15 usage in the US. The point of obligation will move from refiners to blenders.
The change was interpreted by the trade as good for US soybean and corn consumption.
This combined with same rain created harvest delays in Brazil saw soybeans up over 20c a bushel earlier in the session only to close +14c on the nearby. Corn, the clear winner from any potential change in US ethanol demand closed the session higher dragging wheat futures along for the ride. Spring wheat futures, the less volatile of the three US wheat contracts, was higher by 4.75c/bu at the close just over AUD$2.00 / tonne. Canola in both US and Europe was sharply higher although AUD/CAD may void that here. There is also talk that Indian milling wheat imports for the current season may well climb as high as 9mt. Australia has been in the box seat for the Indian business and this may well be the explanation why the wheat that so many domestic traders thought was just going to be there to bleed out over the year is beginning to be a little harder to find than expected.
Canadian durum values moved higher by roughly C$1.00 / tonne in central Saskatchewan.