Markets were a little side tracked with the London news but generally slipped lower on the back of weaker crude and a general fund liquidation of longs across the board. Technically we do see wheat slipping into oversold territory. Generally when the stochastic is at this level we typically see a slight rebound in futures values, the weaker USD is probably also pointing towards a slight recovery in wheat futures in the USA in the short term.
Fundamentally much of the news hitting the market was probably more bullish grains than bearish. Easier access to Egyptian business with expectations of an increase of 500kt to their wheat imports was bullish. The punters are still trying to figure out if the whole ergot debacle in Egypt this year was fabricated to cover up the fact they had no money to buy wheat or if in fact ergot was a real problem in imported wheat. With the regulations now set at the normal and old global standard for ergot one remains sceptical that it probably had more to do with access to US dollars than the health of their citizens.
With around an additional 5 million Syrians now living in Egypt consumption is expected to rise to around 20mt next year.

Chinese canola imports are expected to increase as subsidy revisions are seeing a reduction in their domestic production. China should import around 4.1mt of canola in 17-18 just under the record 5.04mt set in 13-14.