Chicago soybean futures were firmer again overnight, helped higher by good demand for US beans from China.  With Chinese pig numbers up 27% year on year it is signalling a good recovery after ASF and demand for feed grain there continues to grow. Corn futures got a boost from the soybean pit and good Chinese demand while wheat stumbled.
Technically wheat is over sold to maybe neutral but with Australian wheat being so cheap it may struggle to trade higher at least during the Australian harvest period. Soybeans are over bought and gapped higher overnight so it may be testing the upside in the short term. The rally in soybeans did spill over into both ICE canola futures and Paris rapeseed futures, possibly presenting another selling opportunity for canola growers here today. It would be nice if currency shed a couple of cents though.
Overnight the Aussie dollar pushed as high as 73.37 US cents before slipping back into the high 72s. The weaker US dollar is the problem and given there will be little news of interest out of Washington for a couple of months we may be looking at 73c for a few more weeks just yet. If the US government can get their head around a stimulus package before Christmas it will be a surprise and no doubt will see an appreciation in the value of the US dollar if done right. This would be a marketing signal for those looking to price local grain into an export home, grains like durum and canola and possibly SFW1.
In SW Saskatchewan we see wheat and durum cash bids were mostly flat to firmer while canola cash bids followed futures higher. With 1CWAD13 durum bid at C$292.62 for a Feb lift it would indicate Newcastle DR1 should be worth around AUD$400 (bid AUD$379 yesterday).