Funds were net buyers of wheat, corn and soybean futures at Chicago
overnight, taking advantage of sharply lower futures after the USDA WASDE
reported weighed on the market in the previous session. Immediately after
the report was published there were numerous US analyst already calling the
estimated average yield for corn way to high, time will tell.

The rally in US futures and also in Paris rapeseed and Winnipeg canola
futures overnight will be greatly tempered here thanks to a sharply higher
AUD. Although the move in the AUD was not as large against the Euro as it
was against the US dollar. The change will take a large slice of potential
gains away when converting new crop rapeseed to a comparable AUD price for
new crop canola.

US weekly wheat sales reached 395kt, that was towards the higher end of the
trade guesses leading into the report. Just like high prices fix high
prices, low prices too fix low prices. With US wheat, particularly white
wheat, now being very competitive into the Asian markets it will be hard to
justify significant moves higher here unless we continue to see the dry
conditions in NNSW and QLD persist. The sowing window has closed for these
areas, so the wheat that is in the ground is all there will be. Not unlike
Canada, NNSW and QLD are now waiting to see if what is sown will survive.

The tension over the extension of the Black Sea grain deal continues to keep
the wheat and corn market on edge. It would still come as a surprise to many
if the deal was not extended though. It is not in anyone's interest to see
Black Sea grain stalled, short term gains will be eroded by higher carry
out.