Flooding continues across much of northern India this week. There’s also been good rainfall across northern central India but not a lot more than average for this time of year. In the central regions some location are experiencing slightly drier than average conditions, but this is not of concern. The forecast for India predicts further heavy falls across the north and increased falls across central India.

Algeria is back in for milling wheat. As usual their tender calls for minimum shipments of 50kt to tender, but usually they buy much more. In their last tender for milling wheat volume was estimated at 600kt. With world wheat values so low one might expect to see more interest on the buy side.
The Egyptian tender for up to 3.8mt that closed earlier this week is a good example. There were fewer sellers on the offer side for the Egyptian tender. The main deterrent, other than price for the buyer, they’d hate to see it get cheaper, was the delayed payment terms, out to 240 days, not easy for the sellers. It will be interesting to see if Algeria can attract a larger volume of offers at lower values.

Chicago soybeans, Paris rapeseed futures and Winnipeg canola futures closed higher overnight. This is the first higher close for rapeseed and canola since this time last week. The higher close falls well short of countering recent declines in value though. The slightly higher close in Chicago soybeans was said to be mainly technical in nature. Robust US export sales are expected in this weeks USDA sales and shipments report. China continues to be a large buyer of US soybeans. The spillover support into the rapeseed and canola market wasn’t expected to be as great as it was. Canadian canola production is expected to be good this year, but the additional production will only somewhat counter additional import demand from Europe. Compared to current Canadian values, Aussie values will need to fall further to compete into the EU market, even when taking the $15.00 non ISCC compliance penalty into account.