8/11/21 Prices


US corn, wheat and soybean futures at Chicago all followed the same path lower, a the trend this week.
Profit taking and positioning prior to next Tuesdays WASDE report seems to be the key to it all at present. Chicago Dec wheat does appear to be looking a little oversold though.

Corn and soybean harvest progressed in the US, rain delays more towards the east. The Canadian Prairies remains dry with little rain over the last 7 days and much of western Sask and SE Alberta seeing 40% of average rainfall for this time of year over the last 30 days. Much of the Canadian crop is spring sown so not of a huge concern at present.  Heavy rain is predicted for the US Pacific North West next week.
Conditions remain dry across the Volga Valley and south towards Rostov & Krasnodar in Russia. Much of Russia and western Ukraine have seen very little rain to get the winter wheat away. Things can turn quickly in the spring but the crop is not going into winter in the best shape potentially leaving the crop open to winter kill. Very much worth watching in Q1-2 next year. European conditions are fairly benign.

In world trade the EU has agreed to suspend the 25% tariff on US rice in order to get some tariff free steel. Bangladesh has banned soymeal exports in an attempt to slow a rally in animal feeds values and a shortage of supply there.
Wheat prices FOB Black Sea Bulgaria are back a little from the Nov 2nd higher but are still strong at roughly US$326.50 FOB.