US soft red winter wheat futures were lower. The funds have been selling this contract, the HRW and the Spring Wheat contract down for months now, every rally an opportunity to sell. Managed money now hold a record short in Minneapolis spring wheat futures. US cash wheat offers out of the Pacific Northwest were generally flat to stronger in US dollar terms. The weaker USD probably having more of an impact on that than the wheat market.

Tunisia picked up 50kt of durum from Casillo at US$424.69 / tonne C&F according to a Reuters report this morning. On the back of an envelope this would translate to a price of something close to AUD$530 port Newcastle. It’s also about US$7.00 higher than previous purchases. Cash values in Canada were flat overnight but the move in the AUD actually creates about an AUD$8.00 decline in that conversion. The AUD only moved a little against the Euro so the conversion of French values is minimal but sheds almost a dollar. Turkish and Russian sales into Italy continue to slow.

Brazil have reached 58% complete in their soybean sowing program. Hot dry weather continues to hinder progress and is keeping the oilseed market guessing at what will be the final area. There is also talk of some producers in the drier parts of Mata Grosso having to resow soybeans due to poor establishment from drought and heat stress.

Higher values for US export corn has also pushed the offer value for US sorghum higher. Sorghum values C&F China have firmed a couple of dollars this week. Chart attached. Local prices here were influenced by a reduction in trade basis on the back of some rain, not international values.