Chicago soybean futures were pretty flat overnight, the January 25 slot closed in the green by just 1.5c/bu.
Both Paris rapeseed and Winnipeg canola managed a little better. Taking the day to day move in the AUD into account the difference between yesterdays conversion to AUD per tonne and today’s is roughly +AUD$9.34 for Paris and +AUD$9.97 for Winnipeg in the Feb/Jan slots.
There is some speculation that the support is primarily of a technical nature after the recent fall in values triggered buying from algo traders and chartists. If looking at this market purely from a technical perspective one would assume that the gap left back in early July is likely to be filled. If this is the case this higher close may simply be a dead cat bounce in the short term.
Fundamental support for canola and rapeseed will come from EU demand on the back of a smaller crop there. The hot, dry finish in Canada is generally not inducive to good oil content either, time will tell if they suffer the same fate as we do when the finish turns hot and dry. Bearish pressure on the oilseed market comes in the form of a good US soybean crop and the potential for an even bigger crop of beans in S.America than last year, this summer.

Cash values for US wheat, HRWW, Spring wheat and white wheat, out of the Pacific Northwest were all a little lower. Shedding roughly AUD$1.00 to AUD$2.00 per tonne, not a lot, but keeping pace with lower Aussie values yesterday thus remaining well priced into the Asian market.
Paris milling wheat futures performed better than the US market. The Dec 24 contract there closing at €227.50 per tonne, up €4.75. The punters, as with Chicago wheat, continue to be happy to short wheat futures, keeping pressure on values and capping potential improvements.
Hot, dry conditions are expected to remain across the Canadian Prairies this weekend. The recent weather there has eased the disease problems that were a major issue mid way through the growing season, but now the weather continues to pare back yield potential in many spring sown crops.