Initial strength in the US futures market came from talk that China would increase purchases. The optimism surrounding these rumours quickly waned and soybeans lost the majority of the morning gains prior to the close. Both ICE canola futures and Paris rapeseed futures closed the session with modest gains.
Wheat found support from technical trade and potential weather damage in the US. It’s also interesting to note that after the polar blast some parts of the USA are actually expecting temperatures to rise as high as 7C above normal. There is also the prospect of good rainfall for much of the soft red winter wheat belt in the USA. There was support in wheat futures centred around potential export sales increases something we’ve seen but not quiet to the volume the market was hoping for just yet.

Ethiopia are in the market for 400kt of wheat and are said to have received multiple offers to supply. We should see a result from this tender next week some time.
According to some analyst Russia could potentially come up with another 80mt wheat crop this year. The winter hasn’t really thrown anything to dire at the crop and the acres are there. We will just need to wait until the thaw and some ground proofing reports are carried out. The USDA have put out a list of dates for back dated reports to be released. February 8th might be a big day in the markets with the main wheat ones out then.