As mentioned earlier in the week the technical side of the US futures markets had been indicating things had gotten a little oversold in wheat, corn and soybeans over the last week or so. Last night we saw what was probably a small correction as a few of the punters got a little nervous leading up to tonight’s USDA WASDE report.
Corn, wheat and soybeans futures at Chicago all found some upside by the close, soybean managed double digit gains as did wheat for all three grades, SRWW and HRWW at Chicago and DNS at Minneapolis.

As I write, cash bid reporting site PDQ, is still collating cash bids for SW Saskatchewan but the trend for the 9th appears to be firmer durum and spring wheat while canola is flat to mixed. This may go some ways as to explain why the trade was happy to look at higher offers for local DR1 here yesterday. If the current cash bid out of SW Sask averages about where it looks likely to, it may signal potential upside here today. The conversions pegs DR1 at a value somewhere around AUD$390 delivered port.

Both Paris and ICE canola futures found some support from the double digit gain in the soybean pit at Chicago. The firmer AUD is trimming a bit off fat out of the conversion but without taking possible basis absorption into account, a very real possibility given the last few weeks, there is a chance local values could see a couple of dollars upside today.