An almost perfect weather outlook for the USA and good progress with both winter and summer crops are creating the perfect environment for further fund selling in US grain futures and that they done.
Funds pushed hard red wheat futures to a two week low while soft wheat and spring wheat got of a little more lightly. Corn and soybean futures didn’t escape the sell off and both closed the session in the red.
The weather outlook for the corn belt is good with moderate to heavy falls expected Thursday. Heavy falls should return to the hard red wheat belt by the weekend.
Weekly US crop condition rating showed a 1% improvement in the Good to Excellent rating of winter wheat. With the current weather map we may well see further improvements next week.

The Indian weather map does not look as ideal as the USA map. Dry weather is expected to persist across much of India apart from the high country to the north. The should see harvest progress there with little delay.

Canola futures on the ICE appears to be one of the few commodities that escaped last night’s sell off.