There’s not a lot of fundamental news in the grains market this morning.
Overnight the USDA weekly crop progress report was released. Corn harvest in the states is progressing a little quicker than the five year average, now 59% complete versus the 54% average. Conditions over the last week have generally been favourable for harvest across the western corn belt. Soybean harvest is also progressing well, now 76% in the bin versus the 5 year average of 67%. Cotton is estimated at 41% complete, 2pts ahead of the average for this time of year. The condition rating for cotton declined 1pt in the G/E rating, 29% G/E now, and a massive 43% P/VP.
67% of the US sorghum crop is in the bin, Texas all but done and Kansas 57% complete.
Parts of the US central and western corn belt remain in drought, Iowa and eastern Kansas are well worth watching. Although this time of year when the winter wheat is sown the dry weather is bad but it has more of an impact in the spring. the major problem is if the stand is patchy, which is the case in many fields, yield potential will be limited.
Dry weather is creeping into the PNW. This may keep white wheat prices there on the rise, or at least limit downside. FOB offers out of the PNW for club white wheat are around AUD$30 higher since the beginning of the month.

Chinese wheat imports remain very high. A possible indication of just how much the flooding in May – June reduced quality and yields. Year on year imports are up 54%. At 10.2mt already China is well on the way to smashing last years import total of 13.3mt, and a number potentially well above the current USDA import estimate for China of 11mt.