US crop condition ratings saw corn up 1% to 72% Good / Excellent, soybeans were back 2% to 70% G/E, cotton slipped 3% to 40% G/E, the sorghum rating slipped from 48% G/E to 47% and spring wheat slipped from 81% to 75% rated good to excellent.
Winter wheat in the USA was estimated by the USDA to be 29% harvested with Texas and Oklahoma at 85% done and Kansas at 25% complete. The winter wheat condition rating improved 2% to 52% G/E.
The trade were expecting to see a slight decline in winter wheat quality. The improved rating triggered a little selling at Chicago that spring wheat seemed to have gotten caught up in, some may argue in error considering the decline in quality rating for spring wheat. With just 12% of the spring wheat crop in head the decline in quality rating should have rang warning bells in the ears of those looking for protein wheat in 2020. Volume may not be there but if the season stays hard they may well have the quality they need to blend with the lower protein HRW coming off.
Across the border in SW Saskatchewan cash rates for spring wheat also slipped away, the December slot fell C$3.47 / tonne to C$228.66 per tonne ex farm. This would roughly be equivalent to about AUD$335 port for APH2 here. Durum values in SW.Sask were basically unchanged at C$267.53 for a December pickup, equivalent to roughly AUD$400 port here at Newcastle. Current cash bids for DR1 into Newcastle are just a little under that from some traders. The track market is bang on that number though. Both cash canola and ICE futures for Canadian canola were a touch lower overnight, the stronger AUD is not helping the conversion, basis here remains strong.