Wheat futures in the USA were weaker on the back of a good weather outlook for winter wheat. Wet weather is hampering the spring wheat plant in the north of the US but it’s still early days.
Speculation the Argentine wheat crop could be as big as 17.5mt was also weighing on the market as the USDA have it pencilled in at 16mt.
There is some thought that the dry weather in Europe is being countered by the better weather in the USA. Most punters expect to see the 2017 wheat S&D continue to look poor for wheat prices in the mid to long term.

The trade await the first StatsCanada acreage report on Friday. Some see record canola area at the expense of wheat, mostly durum, while others speculate that pulse crops are going to see a big increase. Trade estimates on canola area vary from 20.3mac to 22.5mac. The low side is about the same as last year when they produced around 15.4mt. The most the Canadians have ever planted was back in 2012 when they sowed 22mac.
Durum area is expected to be hit hard with trade estimates now between 4.8mac and 5.8mac, well below last year’s 6.2mac but probably not enough to see any significant moves in values given the current volume of carryover stocks in Canada. The trade don’t seem to care what grade those stocks are. We may see prices become volatile if production issues occur in Saskatchewan.