Soybeans at Chicago suffered a bit of “buy the rumour, sell the fact” type trade overnight. The punter chose to ignore good US export data. Instead selling soybeans off in a round of profit taking which resulted in losses of 21.5c/bu (AUD$10.58) on the nearby contract. The fall in futures pushed right through to the US cash market with some US locations seeing basis losses of 6 – 16c/bu, compounding losses. Did someone say it’s the middle of US soybean harvest out loud ?
Punters walked away from the weekly sales data showing US sales of 2.88mt, yes 29% better than last week’s number. Obviously that’s a reason to sell the market lower. The falling bean / oilseed market rolled through to both Paris rapeseed futures and ICE canola futures at Winnipeg. Black Sea offers were unaffected, actually jumping a little in AUD terms (thank you lower exchange rate).

French durum offers out of Port La Nouvelle were actually back a little but the AUD had a win here resulting in a net increase over yesterday’s conversion to AUD/t. In SE Saskatchewan cash bids were a little firmer at C$751.54 for 1CWAD13 for a Dec21 lift, an increase of C$5.78 per tonne. Durum wheat C&F China, out of the US PNW, was last priced at US$480 per tonne for 13.5%. This would roughly equate to an ex farm LPP price around AUD$544. I actually can’t see an international trader selling at this number. Recent Newcastle port prices have been much better than this, yesterday bid at AUD$629, so about $590 XF equivalent. It does tend to indicate China is not the place to take durum though. For instance French durum into Italy is closer to US$605 CnF. A number closer to AUD$650 ex farm LPP.