With western Saskatchewan swelting in extreme heat, over 39C in some locations. The spring wheat and canola markets remained positive overnight. Spring wheat less convincingly, it’s probably feeling pretty top heavy about now considering we are basically moving into the middle of the HRW harvest in Kansas and yields and quality are generally OK.
Canola on the other hand continues to find good support regardless of the volatility in soy. Cash bids for canola in Saskatchewan followed futures higher. A Dec21 lift averaged around C$804.85 out of SE Sask, up C$17.79 overnight.

At Chicago soft red wheat and hard red wheat succumb to profit taking and harvest pressure. Hard red wheat shed 18c/bu (AUD$8.78) at Chicago for the Dec21 contract. HRW had been enjoying some spill over support from spring wheat but with next 7 days looking just a little drier over Kansas good harvest progress is expected. With prices relatively high producers are expected to be big harvest sellers this year.
With good or excellent growing conditions for the US corn crop, we continue to see profit taking in the corn pit at Chicago. This isn’t lending any support to soft red winter wheat values and without significant improvements in US export sales numbers in the short to mid-term corn may continue to drag SRW values lower.
Hard red winter wheat bids out of the PNW USA did reflect the weaker futures market, slipping 19c/bu for 11.5% / Sept21. Using the back of the envelope this type of wheat is now equivalent to roughly AUD$320 delivered Newcastle port. New crop H2 here was bid at $312 Friday.