Technical pressure continued in US grain futures, corn, wheat and soybeans all closing slightly lower overnight. Week on week US grain futures saw losses, not huge losses considering the recent rally, but enough to bring US grain prices back into play. Values out of the Pacific Northwest were generally less than AUD$2.00 lower on the day. Canadian spring wheat values, both ex farm SE Sask and out of the PNW trended lower in line with US values.
Both Winnipeg nearby canola and Paris rapeseed futures bucked the trend lower in US soybeans. Gains were not significant though, Paris higher by roughly AUD$1.97 and Winnipeg up about AUD$1.44 once moves in AUD / Euro / CAD were considered. The slight move higher may allow local values to claw back some of yesterdays losses. Old crop basis for canola to both the Paris and Winnipeg nearby contracts continues to improve. Possible increased demand from Europe one of the key reasons mid term.
Better than expected US weekly wheat exports sales volume managed to keep losses in the wheat pit to a minimum. Sales were a combined old crop / new crop total of 443kt which was towards the higher side of trade expectations prior to the release of the report. East Asian and central American countries continue to be the biggest buyers of US wheat.
The weekly US Wheat Associates harvest report indicates harvest of HRWW is now underway across Texas and Oklahoma. There are a few test cuts in SC-Kansas but rain continues to slow dry down there. Dry weather across Washington state has seen white wheat mature quickly, the crop now rated at 51% G/E, rain is needed promptly across the PNW to improve the yield outlook. US durum acres are up 22% on last year. The cool start to the season is seen as beneficial so far. Wet weather has delayed field work and the completion of sowing across parts of the US eastern spring wheat states.
French soft wheat crop condition was reduced 2pts to 64%. Recent rain in France not only reducing the quality of the wheat crop but also delaying the completion of the summer crop planting. Corn sowing in France is stalling at 85% at a time when most of the crop is usually sown.