US wheat futures were destroyed in overnight trade, technically killing the uptrend that had been in place since mid-September. Volume was also low, possibly exacerbating the move lower.
Fundamental pressure was limited, mainly from the ABARES report predicting a massive Australian wheat crop, we have a good idea how well that report will age. ABARES has suggested that the late season rain will result in quality losses for Australian wheat growers in NSW & QLD and will not have a huge impact on yield. I wonder if anyone has told them how test weight and sprouting actually works.
US winter wheat sowing is almost complete with emergence on average. Their condition rating isn’t great, 44% G/E but that doesn’t mean a lot until the spring.
The sharp decline in US corn futures was, as with wheat and soybeans, put down to profit taking on a low volume market. There is some talk of “asset allocation adjustments”, shuffling money around, parking it while waiting for the next buy / sell opportunity I guess.
Both Paris rapeseed and Winnipeg canola were sharply lower. Winnipeg slipping a whopping C$40.30 on the nearby contract, outer month declines were not far behind. Paris was down E16.75 on the nearby.
The general commodities sell off continues and from a fundamental perspective should result in anyone who is looking to buy some grain jumping in to take advantage of the fall.  Some commentators are sticking with the narrative than the new COVID variant is the cause for the decline, I find that hard to believe. Let it go, the horse is dead, put the stick down.