Weaker US soybean futures at Chicago set the path for global oilseed values overnight. Declines were noted in the ICE canola contract and the Paris rapeseed contract. Locally the trade did not follow yesterday’s decline in ICE canola futures dollar for dollar, thus we saw some improvement in basis. With basis here still very low there is a good chance a similar pattern will be followed today and we should continue to see a recovery in basis on the back of weaker global futures values. Not the recovery we were hoping for, higher local prices would have been nicer,  but a recovery it is.
US wheat and corn futures are caught up in the technical profit taking, both commodities shedding a few cents at Chicago.

Profit taking was also noted on the Paris exchange where milling wheat futures slipped from a 7.5 year high. The E1.75 fall in milling wheat futures at MATIF was a little surprising given the announcement Algeria picked up 330kt of milling wheat roughly US$21 higher than a previous purchase. Although the sale is noted as optional origin it is expected to be supplied once again from France or EU countries.

As Russian wheat breaks through the US$300 mark we see Turkey hit the market. This time around the tender specifications have been modified to include white wheat (Australian wheat). This is an attempt to increase the number of participants and potentially lower the price on offer. APW from WA could theoretically land FOB Turkey for somewhere around US$305 – $310, close to Ukraine values.