Take two days off and what happens…..where do I start. Winter wheat futures in the US were smashed on Wednesday and Thursday  shedding roughly AUD$20 in two sessions. After a rally on Friday US spring wheat futures will end up closing the last three days of the week out with a similar loss. If you simply look at the previous Friday to last Friday spring wheat futures are only down 1.25c/bu, hardly worth a mention.
Pawing through the market wires, on the outside it simply appears to be a case of overbought markets correcting on the back of a USDA report that was less than ideal and wasn’t exactly where the trade on the long side wanted it to be. The correction that had to happen. In the midterm I wouldn’t be surprised to see US wheat sales on the export front struggle as more Russian wheat comes onto the market.
The main focus for us in regards to the US should be on spring / durum wheat and white wheat. In the Pacific NW of the US white wheat harvest is under way and yields are good, not as good as last year but better than the average. Protein is where it needs to be for soft wheat and harvest is starting up without any quality issues. This may erode some premiums for lower grade white or soft wheat here if our season gets better. Spring wheat and durum continues to struggle. On Friday SK durum was up C$15.00 / tonne.