US wheat futures handed back recent gains and thus continued on their path lower. Chicago corn futures found support from technical trade, and also news of an export sale of 200kt to an unknown buyer. US internal cash bids for corn were mixed, some locations increasing basis while others reduced basis. The basis changes probably a result of a reduction in quality rating by the USDA for some locations in their weekly crop condition report and storms.
US corn still faces stiff competition from Brazil into the Asian markets. July exports from Brazil are expected to reach 4.56mt, possibly beating export estimates from earlier in the month.
The slight strength in the US corn market helped sorghum values higher out of the Gulf of Mexico. FOB Texas vales and CiF China values were a little higher. The combination of these slight improvements in US values and the weaker AUD convert to a day to day improvement in AUD / tonne of roughly AUD$5.00 to AUD$6.00 per tonne and should encourage international buyers to mop up the balance of the Aussie crop at current values (chart attached).

Winnipeg canola futures were mixed. Old crop values slightly lower while new crop values moved about the equivalent value higher. Paris rapeseed futures were lower across the board, both old and new crop slipping similar values. The weaker AUD should limit the impact of the lower Paris market on local values. When converted the €2.75 slip in the Feb25 Paris contract only equates to a day to day variation in the conversion of about AUD$0.55 / tonne. Winnipeg converts to an increase of roughly AUD$6.95 day to day. When comparing Canadian and Australian canola CiF Europe, Canadian canola still works out to be a smidge cheaper, roughly US$15.00. This may change as the Canadian value increases on the back of a dry finish and the Aussie crop continues to improve, eroding basis to Winnipeg canola futures. Basis to Winnipeg had improved greatly recently but given the value of both Canadian and Aussie canola into the EU market one might expect to see some erosion in the short term. Interestingly the ISCC non compliance penalty is -AUD$15.00.