US wheat futures at Chicago followed soybean futures higher. Soybeans were the standout in last night’s session climbing 19.25c/bu (AUD$12.20/t) on the nearby contract and 12.25c/bu in the new crop.  Wheat was a little more sedate climbing about AUD$2.69 / tonne but is being out done by the increase in the AUD against the USD which accounts for a decline equivalent to about AUD$3.44 / t = net loss.

Weather in the USA is cold and wet at present with snow falling across the central grain belt. Cooler conditions are expected to give away to wetter, warmer weather in the mid-term and should see the growing season off to an exceptionally good start in most locations. The most recent drought map for the states shows little to be worried about with just parts of far western Kansas and Colorado being a little drier than ideal and the far south of Texas also being dry.

Conditions are starting to dry out in France after recent heavy rain and flooding saw a reduction to wheat production pencilled in for 2020. Just remember rain makes grain and if the EU crop is sitting in mud it will perform. The last 14 days has been a little drier than desired across the southern durum districts of France. To the NE Germany has seen good rainfall over the last fortnight with the northern part of the country seeing 25-50% more rain than average.
No fresh news on the Saudi barley tender as yet. China buys 756kt of US corn and 340kt of US HRWW. Russia to grow 84.3mt of wheat??.