Canadian cash durum wheat values moved sharply higher during the week. In SW Saskatchewan ex farm values are sitting around C$287 for nearby pickup and C$264 for Nov / Dec pickup. For the December slot this represents a rally of C$21.09. Canadian durum was one of the few commodities that closed the week in the back. Spring wheat values in Saskatchewan were about C$3.00 lower, following the US markets lower.
Potentially large US supplies for new crop soybeans and corn countered confirmation from the USDA of large corn and soybean sales on Friday night. With ethanol and feed demand in the US crashing the thought of larger stocks was overwhelming. The weather outlook for the States is also good with cooler wet weather predicted across much of the corn belt leading to ideal sowing conditions as we move through May.
Mexico picked up 590kt of US corn and about 125kt of soybean while China picked up 136kt of soybeans. The trade are growing wary that China will no longer fulfil their phase one trade deal targets with the USA. Lucky there is an out clause that covers international catastrophes like pandemics.
Wheat futures were lower on the back of rain in Europe, a quick look at Global Ag Weather debunks that theory somewhat. There has been a little rain across the SW of France but the bulk of the EU wheat crop remained relatively dry. The 4-7 day model does look better though with good falls expected across much of France and western Germany and central Poland. Ukraine may also see some much needed rain.