Bargain hunters were active in US grain futures overnight. The recent decline in prices making the market ripe for the punters. Wheat, corn and soybeans all closed in the black and generally towards the sessions high.
Outside markets were stronger with Wall St climbing after the US Fed said they currently have no intention to raise interest rates or initiate tapering. Higher energy prices helped corn and soybeans close higher while wheat also found some steam from good export sales projections and potentially lower Canadian wheat stocks than expected.

The Philippines picked up 112kt of feed wheat at tender, most believe from Australia. The trade is said to have been split between December and January and was believed to have been booked at US$350 C&F. From the outside this looks like pretty good selling, roughly equivalent to AUD$380 XF LPP. Doesn’t exactly make you feel like forward contracting at the current bid of AUD$265 for SFW1 at G’corp Gunnedah is a smart move does it.

In Canada there continues to be a large range in production estimates for durum. No one disagrees with the fact things are tight but currently we see Stats Canada pegging yields at 1.54t/ha and Saskatchewan Ag pegging yields at 1.28t/ha, a 17% variation. Durum values out of SE Sask have stabilised after huge volatility both up and down this month. Nearby domestic shorts there now appear covered, +C$10.78.