US and EU grain futures were all lower in overnight trade. The US grains fell under the pressure of a collapsing soybean contract. Soybeans were weaker on the back of the better weather in Argentina and the falling energy market. A 7.5% reduction in crude oil futures due to higher than expected stocks and some global issues was probably the catalyst for the decline across most sectors; stocks, diesel, petrol and grain futures.
Corn futures were a little unlucky, as there has been nothing but fundamental support for corn this weeks. During the session the funds were net buyers of corn but the trend is your friend and corn and wheat had no option but to follow soybeans lower. Corn, wheat and soybeans all closed on or near the sessions low.
Looking at the stochastic corn is a sell, it’s overbought still, wheat is a buy, it’s oversold and has been for a little while now, soybeans are fairly neutral but appear to be following the path of least resistance, which is currently lower. We may see some, buy wheat / sell corn spreads come into play, it’s not a great option with the spread already at 84c. Further Chinese sales may slow corns decline but technically the spread could get closer to 60c but realistically there is nothing really fuelling a rally in wheat at the moment, so it’s not a great bet.

In SW Saskatchewan we see cash bids for 1CWAD13 down C$3.12 for an April lift and canola back C$26.40 for an April lift. The ice breakers are working in the Great Lakes and Thunder Bay should be ready to load in the coming days or weeks.