Late weakness in the corn and soybean pits dragged US grain futures lower by the close. Initially strength was found for both corn and beans after sales of 196kt of beans to China, and 120kt of corn to Spain were announced. As the session went on the weight of an active harvest week and reports of better than expected yields weighed on the market and a late session sell off settled the score.
US wheat futures are trying to move higher but spill over selling from the row crops and a huge world crop with record ending stocks continues to trump anything technical or fundamental the market is being fed on a daily basis.

In the case of wheat world production is the key, Russia’s crop continues to get bigger with the latest estimates closer to 83mt than the 79mt of a month or so back and well above the 72mt most had pencilled in earlier this year.
Pakistan have also harvested another large wheat crop of 25.7mt, their second largest crop. Although this grain doesn’t usually make it onto the export market is does limit any potential import prospects to high grade for blending.
Turkey are looking for 120kt of high grade milling wheat, this will most likely be Russian as the tender stipulates point of origin as Black Sea, Aegean or Mediterranean.
UK wheat production estimates have also been increased this week with DEFRA coming out with 15.2mt, +1.2mt on their last stab. This swings the UK around from importer to exporter.