Technically speaking, and possibly fundamentally speaking, next week should be fairly interesting. We have the latest WASDE due out on the 9th, so Wednesday morning here. The punters are already talking the estimates (their book) up or down. It should reflect any of the current dry conditions and any potential reduction in winter wheat production in the US from the winter storm a couple of weeks ago.

Technically we saw corn futures at Chicago closing very close to the sessions high last night. The market had been pushing down into over sold territory on the stochastic. If there are reductions in current corn supply for one reason or another in the WASDE the Chicago market is in a position to create a bit of volatility and could rally significantly. The wheat chart is even more over sold than the corn chart. With the wheat / corn spread for May at about 107c/bu one might expect to see more strength on the corn side and a narrowing of the spread, but that’s just a punt. I’ve managed to turn $150 into $34 on my last three Lotto tickets, if I was pushed for odds I’d favour the Chicago game.

Chicago soybeans, like corn, closed at or near the sessions high. Beans dragged canola and rape futures higher, I don’t even want to look at a local canola basis chart on Monday. A smaller soybeans crop in Argentina and continued harvest delays in Brazil were the fundamental reason behind the rally in US beans. Cash bids in the US were mostly flat. The stronger US dollar capped any big moves in grains like wheat which did not have any underlying fundamental support. Offer values out of the PNW were flat to slightly higher. Corn basis flat to lower.