US grain futures were again sharply lower in overnight trade, corn, soybeans and both wheat contracts at Chicago closed the session lower. Spring wheat futures at Minneapolis continued to push higher. Spring wheat cash bids were also sharply higher, the MGEX cash market now trading at over 940c/bu (AUD$455/t).
Cash bid for DNS wheat out of the US Pacific North West were also higher. Wheat of 14% protein for a September lift saw an average bid of 911c/bu. On the back of an envelope this would equate to a Newcastle port number of something like AUD$404 / tonne. Even if we deduct a further $20 for demurrage like so many traders are currently dealing with, we still end up with a number some AUD$70 higher than current new crop bids for APH1. Does this mean those currently carrying old crop APH into the new financial years should look at even longer term storage, that’s a big call.
Cash bids for spring wheat and durum across SE Saskatchewan were flat to lower. Durum is still pulling a C$10 premium to spring wheat for a Dec21 lift.
The Chicago soybean market was sharply lower. Possible changes to EPA fuel blending requirements have kept both corn and soybean markets on edge this week. The weaker bean market rolled over to a couple of dollars off Canadian canola futures but Paris rapeseed futures were generally firmer. Cash canola in SE Sask is still showing a C$40 premium for nearby versus a December lift.
French durum crop ratings fell away 3% to 67% good to excellent after rain in both the southern and northern durum regions.