Another higher close in US wheat futures overnight. The slightly weaker AUD will also help the day to day conversion here. It’s not worth a bunch of upside but if we can keep chipping away a dollar or two, or five, a day than we may get back to a number that will present a profit by harvest. The gains were limited to wheat though, soybeans and corn at Chicago had a softer session, soybeans greatly so, shedding 20.25c/bu on the January slot. The pressure from beans spilled over into both Paris rapeseed futures and Winnipeg canola. The later also still trying to come to terms with what impact the Chinese anti dumping case will have on Canadian values and demand. The weakness in Chicago beans was in part due to the lack of an expected decline in US condition rating. This may change next week as the remnants of Hurricane Francine move across the lower Midwest later this week.

Paris milling wheat and London feed wheat futures were also higher. London not breaking any records, somewhat tempered by lower corn futures, but Paris milling wheat did manage to gain €2.00 in the December slot. Technical buying, managed money covering shorts, is still the main driver in the wheat pit but demand at these current values and the poor sowing conditions for winter wheat in Russia and the wet finish to the spring wheat crop in Siberia can not be ignored as fundamental drivers.

With a WASDE out with some 30 day old data on Thursday night one might not expect to see much more than some technical trade in grains prior to the release. The punters appear to be under the impression that world wheat stocks may see a reduction due to some good export volume month on month, but generally any reductions in yields at one location has been and is expected to be picked up by increases elsewhere.
With just Argentina and Australia left to harvest, N.Hemisphere estimates will likely start to stabilize from this report going forward.