Corn, wheat and soybean futures in the USA all saw downside in overnight trade. The punters continue to square up ahead of the USDA report next week and are ignoring the fundamental signals coming from Australia, Russia, Canada and the USA.
Technically Chicago soft wheat is approaching neutral, this is where you would expect to see it leading into a WASDE report.
The punters are already saying the report will not reflect the last couple of weeks and corn production will likely be too high. Grade variations in wheat is also unlikely to be accounted for.
Better weather next week will allow the planting pace in the US to increase. The weakness in soybeans spilled over into the canola and rapeseed futures markets which both closed lower.
There was a report out yesterday stating Mexico had bought 42 cargoes of S.American corn for delivery over a yet to be determined period. The argument could be made that Mexico is simply reacting to the current planting issues the US is facing.
Mexico have stated that corn will not be included in their tariffs against the US if the US place tariffs on them.  So far I can only find confirmation of one vessel being booked by LD.
The Trump administrations tariff war on the world is being blamed for lots if things now, one of the latest ones in the deforestation of the Amazon as Brazil capitalises on the issues the US is having with China and it attempts to increase production to displace traditional US sales.