Soybeans lead the US futures market lower in overnight trade. The lack of any news regarding Chinese purchases in the this week’s export sales report triggered a round of technical selling as the punters start to wonder when China will come to the plate the USA had kept so full for them. The barbed wire around the plate is a bit of a problem but the US promise it’s not a problem……..once again, well played China.
The Chinese have stated all along that they will buy US product if US product is competitive. In the meantime they will buy from other suppliers. For example Brazil is some US$10 under the US at an FOB level for soybeans at present, excluding any tariffs. Argentine and US soybeans are roughly the same price.
Although US weekly corn sales were good at 1.38mt the year on year sales pace is not so great with the US still 45% behind this time last year.  News that Argentina has sown 15.57 million acres of corn didn’t help US sentiment either.
Wheat was caught up in the selling but managed to close the session out relatively unchanged. US weekly sales were OK at 645kt, this will keep wheat supported in the short term but if the row crops continue to slide wheat’s resistance will be tested.

European wheat featured in both the latest Egyptian tender and into Ethiopia. Egypt picked up 180kt of French wheat at US$231.10 FOB Dunkirk off Glencore. This price is US$5.00 lower than the last tender. This is pretty much in line with the direction Paris milling wheat futures have taken in the short term. Russia remains relatively quiet on the export front with minimal offers or prices higher than EU values.