Most of the fundamental news out last night was more bullish than bearish wheat, yet we see the punters concentrating of the improvement in the US dollar as the major influencing factor thus wheat was softer across all three US grades.
Chicago soybeans flirted with 7 year highs before slipping back and closing near the session low. Reports of shot and sprung soybeans in Brazil has many of the forecasters rethinking their ideas on S.American bean production this summer. The news pushed both Paris and ICE canola futures higher. The nearby Paris market up AUD$11.23/t and ICE canola up AUD$10.62 / tonne. Let’s see if we can break -AUD$210 basis on ICE today.

The bullish data included weekly US export inspections. Corn 1.544mt, Sorghum 191kt, Soybeans 587.5kt and wheat 482kt. Wheat was a little higher than expected with the Pacific Northwest making up 369.8kt of the total wheat loaded. China taking all the sorghum and around 130.6kt of the wheat. White wheat out of the PNW was bid at US$294 FOB, roughly equivalent to AUD$330 delivered port here, well above current cash bids available at Newcastle. This is using Japan as the buyer. It looks worse if we pencil in China or consumers in SE Asia as the buyer as our frieght to those locations is a lot less than the US.
Pakistan and Algerian wheat tenders also hit the market last night. Pakistan in for 300kt of milling wheat and who knows what Algeria will buy. The punters appear to be waiting to see what’s in tonight’s USDA WASDE report, will US wheat be adjusted lower.